(Name,
address, including zip code and telephone number, including area code, of agent for service)

Copies to:

Craig D. Jacoby

Kenneth L. Guernsey

David G. Peinsipp

Cooley LLP

101 California
Street, 5th Floor

San Francisco, CA 94111

(415) 693-2000

Laurence Wilson

General Counsel

Yelp! Inc.

706 Mission Street

San
Francisco, CA 94103

(415) 908-3801

Alan F. Denenberg

Davis Polk & Wardwell LLP

1600 El Camino Real

Menlo Park, CA 94025

(650)
752-2000

Approximate date of commencement of proposed sale to the public: As soon as practicable after the effective date of this registration
statement.

If any of the securities being registered on this Form are to be offered on a delayed or continuous basis pursuant to
Rule 415 under the Securities Act, check the following box. ¨

If this Form is filed to register additional securities for an offering pursuant to Rule 462(b) under the Securities Act, please check the
following box and list the Securities Act registration statement number of the earlier effective registration statement for the same
offering. ¨

If this Form is a post-effective amendment filed pursuant to Rule 462(c) under the Securities Act, check the following box and list the Securities Act registration statement number of the earlier effective
registration statement for the same offering. ¨

If this Form is a post-effective amendment filed pursuant to Rule 462(d) under the Securities Act, check the following box and list the
Securities Act registration statement number of the earlier effective registration statement for the same offering. ¨

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated
filer, a non-accelerated filer, or a smaller reporting company. See the definitions of large accelerated filer, accelerated filer and smaller reporting company in Rule 12b-2 of the Exchange Act.

Large accelerated filer

¨

Accelerated filer

¨

Non-accelerated filer

x

(Do not check if a smaller reporting company)

Smaller reporting company

¨

CALCULATION OF REGISTRATION FEE

Title of Each Class of

Securities to be Registered

ProposedMaximum

AggregateOffering Price(1)(2)

Amount of

Registration Fee

Class A Common Stock, $0.000001 par value per share

$100,000,000

$11,460

(1)

Estimated solely for the purpose of calculating the amount of the registration fee pursuant to Rule 457(o) under the Securities Act of 1933, as amended.

(2)

Includes offering price of any additional shares that the underwriters have the option to purchase.

The Registrant hereby amends this Registration Statement on such date or dates as may be necessary to delay its effective date until the
Registrant shall file a further amendment which specifically states that this Registration Statement shall thereafter become effective in accordance with Section 8(a) of the Securities Act of 1933, as amended, or until the Registration
Statement shall become effective on such date as the Securities and Exchange Commission acting pursuant to said Section 8(a), may determine.

The information in this preliminary prospectus is not complete and may be changed. These securities
may not be sold until the registration statement filed with the Securities and Exchange Commission is effective. This preliminary prospectus is not an offer to sell nor does it seek an offer to buy these securities in any jurisdiction where the
offer or sale is not permitted.

Subject To
Completion. Dated November 17, 2011

Shares

Class A Common Stock

This is an initial public offering of shares of Class A common stock of Yelp Inc.

Yelp is offering of the shares to be sold in the offering. The selling
stockholders identified in this prospectus are offering an additional shares. Yelp will not receive any of the proceeds from the sale of the shares being sold by the selling
stockholders.

Prior to this offering, there has been no public market for the Class A common stock. It is currently estimated that
the initial public offering price per share will be between $ and $ . Application has been made for quotation on the
under the symbol YELP.

See Risk Factors beginning on page 14 to read about factors you should consider before
buying shares of the Class A common stock.

Neither the Securities
and Exchange Commission nor any other regulatory body has approved or disapproved of these securities or passed upon the accuracy or adequacy of this prospectus. Any recommendation to the contrary is a criminal offense.

Per Share

Total

Initial public offering price

$

$

Underwriting discount

$

$

Proceeds, before expenses, to Yelp

$

$

Proceeds, before expenses, to the selling stockholders

$

$

To the extent that the underwriters sell more than
shares of Class A common stock, the underwriters have the option to purchase up to an additional
shares from Yelp at the initial public offering price less the underwriting discount.

The underwriters expect to deliver the shares
against payment in New York, New York on , 2012.

We have not authorized anyone to give any information or to make any representations other than those contained in this prospectus or in any free
writing prospectuses we have prepared. We take no responsibility for, and can provide no assurance as to the reliability of, any other information that others may give you. This prospectus is an offer to sell only the shares offered hereby, and only
under circumstances and in jurisdictions where it is lawful to do so. The information contained in this prospectus is current only as of its date.

Unless the context otherwise indicates, where we refer in this prospectus to our mobile application or mobile app, we refer to all of our applications for mobile-enabled devices. Similarly,
references to our website refer to both the U.S. and international versions of our website.

This summary highlights information contained elsewhere in this prospectus and does not contain all of the information that you should consider
in making your investment decision. Before investing in our Class A common stock, you should read the entire prospectus carefully, including the sections entitled Risk Factors and Managements Discussion and Analysis of
Financial Condition and Results of Operations and our consolidated financial statements and the related notes. Unless the context suggests otherwise, references in this prospectus to Yelp, the Company, we,
us and our refer to Yelp Inc. and, where appropriate, its subsidiaries.

Company Overview

Yelp connects people with great local businesses. Our platform features more than 22 million reviews of almost every type of local business, from
restaurants, boutiques and salons to dentists, mechanics, plumbers and more. These reviews are written by people using Yelp to share their everyday local business experiences, giving voice to consumers and bringing word of mouth online.
The information these reviews provide is valuable for consumers and businesses alike. Approximately 61 million unique visitors used our website, and our mobile application was used on more than 5 million unique mobile devices, on a monthly average
basis during the quarter ended September 30, 2011. Businesses, both small and large, use our platform to engage with consumers at the critical moment when they are deciding where to spend their money. Our business revolves around three key
constituencies: the contributors who write reviews, the consumers who read them and the local businesses that they describe.

Contributors. We foster and support vibrant communities of contributors in local markets across the United States,
Canada and Europe. These contributors provide rich, firsthand information about local businesses, such as reviews, ratings and photos.

Consumers. Our platform is transforming the way people discover local businesses and is attracting a large audience
of geographically and demographically diverse consumers. Every day, millions of consumers visit our website or use our mobile app to find great local businesses. Our strong brand and the quality of the review content on our platform have enabled us
to attract this large audience with almost no traffic acquisition costs.

Local Businesses. Our platform
provides local businesses with a variety of free and paid services that help them engage with consumers at the critical moment when they are deciding where to spend their money.

Powerful Network Effect. Our platform helps people find great local businesses to meet their everyday needs. As more
people use our platform, more of them write reviews. Each review that a user contributes helps expand the breadth and depth of the content on our platform, in turn drawing in more consumers. This increase in consumer traffic improves our value
proposition to local businesses as they seek low-cost, easy-to-use and effective advertising solutions to target a large number of intent-driven consumers.

Yelp Mobile. We help consumers make decisions on the go. Our mobile app was recognized in the Apple iPhone Hall of Fame for App Store Essentials and, as of November 10, 2011, was the
#1 listed top free travel app in Apples App Store.

As our community has grown and our product offerings have expanded, we have seen significant
growth in reviews, traffic, claimed local business locations and active local business accounts.



We had more than 22 million reviews on our platform as of September 30, 2011, up 66% from the prior year.



We had approximately 61 million unique visitors on a monthly average basis for the quarter ended September 30, 2011, up 63% from the same period in the
prior year.



We had approximately 529,000 claimed business locations as of September 30, 2011, up 114% from the prior year.



We recognized revenue from approximately 19,000 active local business accounts for the quarter ended September 30, 2011, up 75% from the same period in the
prior year.

We generate revenue primarily from the sale of advertising on our website to local businesses and
national brands that seek to reach our growing audience of consumers. In the first nine months of 2011, we generated $58.4 million in net revenue, representing 80% growth over the first nine months of 2010. In this same period, we generated a net
loss of $7.6 million and an adjusted EBITDA loss of $1.1 million. For information on how we define and calculate number of contributed reviews, unique visitors, claimed local business locations, active local business accounts and adjusted
EBITDA, and a reconciliation of adjusted EBITDA to net loss, see Selected Consolidated Financial and Other Data.

Industry Overview

Every day, hundreds of millions of consumers make decisions about where to spend their money at local businesses. According to the
U.S. Census Bureau, in the United States alone, there are over 27 million local business locations, which we believe represents a multi-trillion dollar market for commerce. According to BIA/Kelsey, a market intelligence firm, local businesses
are estimated to have spent $19.6 billion on online advertising and $113.6 billion on traditional offline advertising in 2010. We believe several secular trends will increasingly challenge the traditional ways in which local businesses
have connected with consumers and will offer opportunities for solutions like ours.

Online Reviews are Gaining
Credibility. With the growth of the Internet, online reviews have become a regularly relied-upon source of information. According to a 2011 survey of U.S. consumers conducted by Cone Communications, a public relations and
marketing agency, 87% of respondents said that positive information they read online reinforced their decision to purchase a product or service and 64% of respondents said that they go online to search for customer or user reviews.

Local Advertising is Moving from Offline to Online. Over the past decade, the advertising market for
local businesses has undergone rapid and fundamental changes. Consumers who at one time turned almost exclusively to the yellow pages, newspapers, magazines and other forms of offline media for information about local businesses are now increasingly
relying on online resources. As consumers move online, local businesses are shifting their ad spending from traditional media sources to online advertising.

Mobile Connected Devices and Apps are Proliferating.Mobile devices provide an ideal platform for people to search for local businesses due to their ability to identify consumer
location and provide all the benefits of digital content to consumers on the go. IDC, a market research firm, estimates that there will be over 1 billion smartphone shipments worldwide in 2015.

We believe consumers are drawn to our platform because Yelp reviews reflect recent, firsthand experiences from the community that help consumers find the best local businesses for their everyday needs. The Yelp
platform is free and easy to use and has broad demographic appeal, serving local communities in the United States and internationally.

Yelp Reviews. Yelp reviews are core to the Yelp experience and a key point of differentiation from competing
services. The passionate and detailed reviews on Yelp form a rich database from which consumers can draw relevant information about how and where to spend money locally.

Some of the distinguishing characteristics of Yelp reviews include:



Breadth. Our users have contributed over 22 million reviews covering a wide range of local business categories. The chart
below highlights the breakdown by industry of local businesses that have received reviews on our platform through September 30, 2011.



Depth. We feature full-text reviews, providing detailed, searchable information about local businesses with greater depth of
content than most competitive offerings. As of September 30, 2011, the reviews on our platform contained an average of more than 100 words. In addition to more than 22 million reviews, we collect photos, check-ins and other
detailed information about local businesses. The in-depth nature of these reviews and other information allows Yelp to provide useful responses even to very specific queries from consumers.



Relevant and Recent. Our platform is continually updated with fresh content from the community. Our contributors submitted over
25,000 reviews per day during the quarter ended September 30, 2011.



Trusted and Credible. The credibility of Yelp reviews is a critical component of our value proposition and brand. We ensure that
all reviews are written by users with public Yelp profiles, and we encourage local businesses to respond to positive and negative reviews alike. We also use proprietary, automated filtering software to help us showcase the most helpful and reliable
reviews among the millions that are submitted to our website.

Mobile. Our mobile app is an ideal way for people to discover great local businesses. It combines our reviews and
other relevant information with knowledge of the consumers location in an integrated experience. Our mobile app also provides new ways to contribute content to our platform through features that let consumers check-in at local
businesses and submit photos and quick tips directly from their smartphones.

Why Local Businesses Choose Yelp

Yelp serves local businesses by helping them get discovered, engage with potential customers and increase sales easily and affordably.

Broad and Targeted Reach. Our platform helps local businesses access a large audience of potential consumers at the
specific moment when they are searching for a local business.

Focus on Demand Fulfillment. In contrast to
other marketing solutions that only create awareness and attempt to generate consumer demand through online advertising and email marketing, we also help businesses fulfill demand by engaging with consumers who have already expressed demand for a
specific product or service.

Easy, Flexible and Affordable Platform to Engage with Consumers. Our
platform provides multiple free and paid advertising solutions to engage with consumers, including: free online business accounts; search advertising; and Yelp Deals. Within a matter of minutes, a business owner can set up a free online business
account. With minimal additional effort, she can use our online advertising platform to engage with customers and track the effectiveness of ads and deals. We offer local businesses performance and impression-based advertising and the flexibility to
pay on a monthly basis or through the purchase of three, six or 12-month advertising plans.

Our Strengths

We are one of the leading providers of information about local businesses. We believe that our success is largely attributable to the breadth, depth
and overall quality of the more than 22 million reviews contributed to our platform. These reviews helped us draw approximately 61 million unique visitors to our website, on a monthly average basis for the quarter ended September 30,
2011. In addition to the reviews available on our platform, other key strengths contributing to our success include:



Passionate Community. We foster and support vibrant communities of contributors in the markets in which we operate, creating an
environment that is conducive for people to write thoughtful and detailed reviews about local businesses. These local communities are hard to replicate, and they generate the detailed and passionate reviews for which we are known.



Leading Brand in Local. Our exclusive focus on local has helped us to establish a powerful brand identity for local search. To
maintain our strong brand, we will continue to foster communities of contributors, strive to ensure the richness and authenticity of reviews and increase the speed and accuracy of local business search.



Powerful Network Effect. Our platform helps people find great local businesses to meet their everyday needs. As more people use our
platform, more of them write reviews. Each review

that a user contributes helps expand the breadth and depth of the content on our platform, in turn drawing in more consumers. This increase in consumer traffic improves our value proposition to
local businesses as they seek low-cost, easy-to-use and effective advertising solutions to target a large number of intent-driven consumers.



Proven Market Development Strategy. We have a track record of successfully building out new markets, which is a key driver of our
growth and our leadership position.



Local-Focused Sales Force. We have been able to attract and train a highly specialized and effective internal sales force. Members
of our sales force benefit from our powerful business model and brand, as they have easy access to approximately 19 million U.S. local businesses and approximately 529,000 claimed local business locations worldwide on our platform.



Proprietary Technology. Our highly skilled engineering team has developed superior search and review filtering technologies, which,
together with ongoing innovation, help us attract a large base of contributors, consumers and local businesses.



Attractive Business Model. Reviews contributed by our users enable us to benefit from low content creation costs. Based on the
breadth of content and variety of advertising solutions on our platform, we have been able to attract a large audience of consumers with almost no traffic acquisition costs and a diverse customer base of local business and national brand
advertisers.

Our Growth Strategy

We intend to grow our platform and our business by focusing on the following key growth strategies:

Growth in Existing Markets. Within existing markets, we will seek to increase the number of reviews, attract more
users, increase usage of current users and attract more businesses.

Expand to New Geographic Markets. We
are active in the United States, Canada and Europe, and we see a significant opportunity to continue expanding our footprint in new markets, both domestically and abroad. While we have not yet begun to sell advertising in our international markets,
we intend to begin hiring an international sales force in 2012.

Platform Expansion. We plan to
continue to innovate and introduce new products for our website and mobile app and to introduce our content and solutions on new platforms and distribution channels, such as automobile navigation systems, web-enabled televisions and voice-enabled
mobile devices.

Enhance Monetization. We intend to grow our sales force and expand our portfolio
of revenue-generating products in order to reach more businesses and increase the amount they spend on our advertising products.

As of September 30, 2011, we were active in 43 Yelp markets in the United States and 22 Yelp markets internationally. In the markets we have entered, review growth and consumer activity are generally
followed by revenue generated from local businesses. To illustrate the development of our markets as they scale, we highlight below our review and revenue metrics for three cohorts of Yelp markets in the United States: the Yelp markets that we
launched in 2005-2006; the Yelp markets that we launched in 2007-2008; and the Yelp markets that we launched in 2009-2010.

U.S. Market Cohort

Number ofYelp Markets (1)

AverageCumulativeReviews9/30/11
(2)

Year-Over-YearGrowth inAverageCumulativeReviews (3)

Average LocalAdvertisingRevenueYTD
2011 (4)

Year-Over-YearGrowth inAverage LocalAdvertisingRevenue (5)

2005  2006 Cohort

6

1,903

55

%

$

4,077

51

%

2007  2008 Cohort

14

428

67

%

$

761

87

%

2009  2010 Cohort

18

109

95

%

$

96

137

%

(1)

A Yelp market is defined as a city or region in which we have hired a Community Manager. For more information, see BusinessMarket Development Strategy.

(2)

Average cumulative reviews is defined as the total cumulative reviews of the cohort as of September 30, 2011 (in thousands) divided by the number of markets in the cohort.

(3)

Year-over-year growth in average cumulative reviews compares the average cumulative reviews as of September 30, 2011 with that of September 30, 2010.

(4)

Average local advertising revenue is defined as the total local advertising revenue from businesses in the cohort over the nine-month period ended September 30, 2011 (in
thousands) divided by the number of markets in the cohort.

(5)

Year-over-year growth in average local advertising revenue compares the local advertising revenue in the nine-month period ended September 30, 2011 with that of the same
period in 2010.

Risks Associated with Our Business

Our business is subject to numerous risks and uncertainties, including those highlighted in the section titled Risk Factors immediately following this prospectus summary. Some of these risks are:



we have a short operating history in an evolving industry, which makes it difficult to evaluate our future prospects and may increase the risk that we will not
be successful;



we have incurred significant operating losses in the past, and we may not be able to generate sufficient revenue to achieve or maintain profitability. Our recent
growth rate will likely not be sustainable, and a failure to maintain an adequate growth rate will adversely affect our results of operations and business;



we rely on traffic to our website from search engines like Google, Yahoo! and Bing. If our website fails to rank prominently in unpaid search results, traffic to
our website could decline and our business would be adversely affected;



if users do not value the quality and reliability of the reviews, photos and other content that we display on our platform, they may stop or reduce the use of
our products, which could adversely impact the growth of our business;

our business depends on a strong brand, and any failure to maintain, protect and enhance our brand would hurt our ability to retain or expand our base of users
and advertisers, or our ability to increase their level of engagement;



if we fail to maintain and expand our base of advertisers, our revenue and our business will be harmed;



if we fail to expand effectively into new markets, both domestically and abroad, our revenue and our business will be harmed; and



the dual class structure of our common stock has the effect of concentrating voting control with those stockholders who held our stock prior to this offering,
including our founders, directors, executive officers and employees and their affiliates, and limiting your ability to influence corporate matters.

Corporate Information

We were incorporated in Delaware on September 3, 2004 under the
name Yelp, Inc. Our principal executive offices are located at 706 Mission Street, San Francisco, California 94103, and our telephone number is (415) 908-3801. Our website address is www.yelp.com. Information contained on or accessible through
our website is not a part of this prospectus and should not be relied upon in determining whether to make an investment decision.

Yelp,
Yelp Inc., the Yelp logo and other trade names, trademarks or service marks of Yelp appearing in this prospectus are the property of Yelp. Trade names, trademarks and service marks of other companies appearing in this prospectus are the property of
their respective holders.

Total Class A and Class B common stock to be outstanding after this offering

shares

Option to purchase additional shares of Class A Common Stock offered by Yelp

shares

Voting rights

Following this offering, we will have two classes of authorized common stock: Class A common stock and Class B common stock. The rights of the holders of Class A and Class B common stock are identical,
except with respect to voting and conversion. The holders of Class A common stock are entitled to one vote per share, and the holders of Class B common stock are entitled to 10 votes per share, on all matters that are subject to a stockholder vote.
Each share of Class B common stock may be converted into one share of Class A common stock at any time at the election of the holder thereof, and will be automatically converted into one share of Class A common stock upon the earlier of (i) the date
specified by a vote of the holders of 66 2/3% of the outstanding shares of Class B common stock, and (ii) transfer thereof. In addition, all shares of Class A common stock and Class B common stock will automatically convert into a single class of
common stock upon the earlier of (x) the date on which the number of outstanding shares of Class B common stock represents less than 10% of the aggregate combined number of outstanding shares of Class A common stock and Class B common stock, and (y)
seven years from the effective date of this offering. See Description of Capital Stock for additional information.

Use of proceeds

We intend to use the net proceeds to us from this offering for general corporate purposes, including working capital, sales and marketing activities, general and administrative matters and capital
expenditures. In addition, we may use a portion of the proceeds from this offering for acquisitions of complementary

businesses, technologies or other assets. We will not receive any of the proceeds from the sale of shares to be offered by the selling stockholders. See Use of Proceeds for additional
information.

Risk factors

See Risk Factors beginning on page 14 and the other information included in this prospectus for a discussion of factors you should carefully consider before deciding to invest in our Class A
common stock.

Proposed symbol

YELP

The number of shares of Class A and Class B common
stock to be outstanding after this offering is based on no shares of our Class A common stock and 207,746,688 shares of our Class B common stock (including preferred stock on an as-converted basis) outstanding as of September 30, 2011, and
excludes:



38,855,506 shares of Class B common stock issuable upon the exercise of outstanding stock options as of September 30, 2011 pursuant to our Amended and
Restated 2005 Equity Incentive Plan (2005 Plan) or our 2011 Equity Incentive Plan (our 2011 Plan), which was adopted as a successor and continuation of our 2005 Plan, at a weighted-average exercise price of $1.3417 per share;



3,776,221 additional shares of Class B common stock reserved for future issuance prior to this offering under our 2011 Plan; and



additional shares of Class A common stock to be reserved for future issuance under
our Amended and Restated 2011 Equity Incentive Plan, to be amended and restated in connection with this offering, as well as any automatic increases in the number of shares of Class A common stock reserved for future issuance under this benefit
plan.

Unless we specifically state otherwise, all information in this prospectus (other than historical financial
statements) is as of September 30, 2011 and assumes:



the reclassification of our common stock into an equal number of shares of our Class B common stock and the authorization of our Class A common stock;



the effectiveness of our amended and restated certificate of incorporation, which we will file immediately prior to the closing of this offering;



the automatic conversion of all outstanding shares of our preferred stock into an aggregate of 143,267,115 shares of Class B common stock immediately prior to
the closing of this offering; and



no exercise of the underwriters option to purchase up to an additional shares of
Class A common stock.

The following tables summarize our consolidated financial and other data. You should read this summary consolidated financial data together with
Selected Consolidated Financial and Other Data, Managements Discussion and Analysis of Financial Condition and Results of Operations and our consolidated financial statements and related notes, all included elsewhere in
this prospectus.

We have derived the consolidated statements of operations data for the years ended December 31, 2008, 2009 and
2010 and the consolidated balance sheet data as of December 31, 2009 and 2010 from our audited consolidated financial statements appearing elsewhere in this prospectus. The consolidated statements of operations data for the nine months ended
September 30, 2010 and 2011 and consolidated balance sheet data as of September 30, 2011 have been derived from our unaudited consolidated financial statements appearing elsewhere in this prospectus. We have prepared the unaudited
financial data on the same basis as the audited consolidated financial statements. We have included, in our opinion, all adjustments, consisting only of normal recurring adjustments, that we consider necessary for a fair presentation of the
financial information set forth in those statements. Our historical results are not necessarily indicative of the results that should be expected in the future, and our interim results are not necessarily indicative of the results that should be
expected for the full year or any other period.

Weighted-average shares used to compute pro forma net loss per share attributable to common stockholders(1) (unaudited)

Basic

198,366

203,350

Diluted

198,366

203,350

Other Financial and Operational Data:

Reviews(2)

4,689

8,834

15,115

13,475

22,390

Unique Visitors(3)

15,736

26,077

39,356

37,496

61,102

Claimed Local Business Locations(4)

25

120

307

247

529

Active Local Business Accounts(5)

4

7

11

11

19

Adjusted EBITDA(6)

$

(5,303

)

$

(575

)

$

(5,741

)

$

(6,129

)

$

(1,113

)

(1)

Pro forma net loss per share attributable to common stockholders has been calculated assuming the conversion of all outstanding shares of our preferred stock into shares of our
Class B common stock, as though the conversion had occurred as of the beginning of the first period presented or the original date of issue, if later.

(2)

Represents the cumulative number of reviews submitted to Yelp since our inception, as of the period end. We define a review as each individually written assessment submitted by a
user who has registered by creating a public profile on our platform. For more information, see Managements Discussion and Analysis of Financial Condition and Results of OperationsKey MetricsReviews.

(3)

Represents the average number of monthly unique visitors for the last three months of the period. We define monthly unique visitors as the total number of unique visitors who
have visited our website at least once in a given month, and we average the number of monthly unique visitors in each month of the three-month period to calculate monthly average unique visitors. For more information, see Managements
Discussion and Analysis of Financial Condition and Results of OperationsKey MetricsUnique Visitors.

(4)

Represents the cumulative number of business locations that have been claimed on Yelp worldwide since 2008, as of the period end. For more information, see
Managements Discussion and Analysis of Financial Condition and Results of OperationsKey MetricsClaimed Local Business Locations.

(5)

Represents the number of active local business accounts from which we recognized revenue during the last three months of the period. For more information, see
Managements Discussion and Analysis of Financial Condition and Results of OperationsKey MetricsActive Local Business Accounts.

(6)

We define adjusted EBITDA as net loss, adjusted to exclude: provision (benefit) for income taxes, other income (expense), net, interest income, depreciation and amortization and
stock-based compensation. See Non-GAAP Financial MeasuresAdjusted EBITDA for more information and for a reconciliation of adjusted EBITDA to net income (loss), the most directly comparable financial measure calculated and presented
in accordance with generally accepted accounting principles in the United States, or GAAP.

Stock-based compensation included in the statements of operations data above was as follows:

0000

0000

0000

0000

0000

Year Ended December 31,

Nine Months Ended September 30,

2008

2009

2010

2010

2011

(in thousands)

(unaudited)

Cost of revenue

$



$



$

26

$

18

$

33

Sales and marketing

141

221

662

389

1,111

Product development

64

179

260

168

557

General and administrative

160

157

483

302

1,810

Total stock-based compensation

$

365

$

557

$

1,431

$

877

$

3,511

As of December 31,

As of September 30, 2011

2009

2010

Actual

Pro Forma (1)

Pro Forma As Adjusted(2)(3)

(in thousands)

(unaudited)

Consolidated Balance Sheet Data:

Cash and cash equivalents

$

15,074

$

27,074

$

23,128

$

23,128

$

Property, equipment and software, net

2,184

5,256

8,954

8,954

Working capital

15,092

28,741

21,743

21,743

Total assets

20,817

41,015

42,155

42,155

Redeemable convertible preferred stock

30,877

55,246

55,387



Total stockholders equity (deficit)

(13,169

)

(20,889

)

(23,863

)

31,524

(1)

The pro forma column reflects the automatic conversion of all outstanding shares of our preferred stock into 143,267,115 shares of our Class B common stock immediately prior to
the closing of this offering.

(2)

The pro forma as adjusted column reflects (i) the automatic conversion of all outstanding shares of our preferred stock into 143,267,115 shares of our Class B common stock
immediately prior to the closing of this offering and (ii) the sale by us of shares of our Class A common stock offered by this prospectus at an assumed initial
public offering price of $ per share, which is the midpoint of the price range set forth on the cover page of this prospectus, after deducting underwriting discounts and commissions and estimated
offering expenses payable by us.

(3)

A $1.00 increase (decrease) in the assumed initial public offering price of $ per share would increase (decrease) the amount of
cash and cash equivalents, working capital, total assets and total stockholders equity (deficit) by approximately $ million, assuming the number of shares offered by us, as set forth on the cover
page of this prospectus, remains the same and after deducting underwriting discounts and commissions and estimated offering expenses payable by us. Similarly, each increase (decrease) of one million shares in the number of shares of our Class A
common stock offered by us would increase (decrease) the amount of cash and cash equivalents, working capital, total assets and total stockholders equity (deficit) by approximately $ million,
assuming that the assumed initial public offering price remains the same and after deducting underwriting discounts and commissions and estimated offering expenses payable by us. The pro forma as adjusted information discussed above is illustrative
only and will be adjusted based on the actual public offering price and other terms of this offering determined at pricing.

To provide investors with additional information regarding our
financial results, we have disclosed in the table above and elsewhere in this prospectus adjusted EBITDA, a non-GAAP financial measure. We have provided a reconciliation below of adjusted EBITDA to net loss, the most directly comparable GAAP
financial measure.

We have included adjusted EBITDA in this prospectus because it is a key measure used by our management and board of
directors to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget and to develop short- and long-term operational plans. In particular, the exclusion of certain expenses in calculating adjusted
EBITDA can provide a useful measure for period-to-period comparisons of our core business. Accordingly, we believe that adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the
same manner as our management and board of directors.

Adjusted EBITDA has limitations as an analytical tool, and you should not
consider it in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:



although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and adjusted
EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements;

adjusted EBITDA does not consider the potentially dilutive impact of equity-based compensation;



adjusted EBITDA does not reflect tax payments that may represent a reduction in cash available to us; and



other companies, including companies in our industry, may calculate adjusted EBITDA differently, which reduces its usefulness as a comparative measure.

Because of these limitations, you should consider adjusted EBITDA alongside other financial performance measures,
including various cash flow metrics, net income (loss) and our other GAAP results. The following table presents a reconciliation of adjusted EBITDA to net loss for each of the periods indicated:

Investing in our Class A common stock involves a high degree of risk. You should carefully consider the risks and uncertainties described
below, together with all of the other information in this prospectus, including Managements Discussion and Analysis of Financial Condition and Results of Operations and our consolidated financial statements and related notes,
before deciding whether to purchase shares of our Class A common stock. Any of the following risks could materially and adversely affect our business, financial condition, results of operations or prospects, and cause the value of our
Class A common stock to decline, which could cause you to lose all or part of your investment.

Risks Related to Our Business
and Industry

We have a short operating history in an evolving industry, which makes it difficult to evaluate our future prospects and may
increase the risk that we will not be successful.

We have a short operating history in an evolving industry that may not develop
as expected, if at all. This short operating history makes it difficult to assess our future prospects. You should consider our business and prospects in light of the risks and difficulties we may encounter in this rapidly evolving
industry. These risks and difficulties include our ability to, among other things:



increase the number of users of our website and mobile app, the number of reviews and other content on our platform and our revenue;



continue to earn and preserve a reputation for providing meaningful and reliable reviews of local businesses;

If the demand for information regarding local businesses does not develop as we expect, or if we fail to address the needs of this demand, our business will be harmed. We may not be able to successfully
address these risks and difficulties or others, including those described elsewhere in these risk factors. Failure to adequately address these risks and difficulties could harm our business and cause our operating results to suffer.

We have incurred significant operating losses in the past, and we may not be able to generate sufficient
revenue to achieve or maintain profitability. Our recent growth rate will likely not be sustainable, and a failure to maintain an adequate growth rate will adversely affect our results of operations and business.

Since our inception, we have incurred significant operating losses, and, as of September 30, 2011, we had an accumulated deficit of
approximately $32.1 million. Although our revenues have grown rapidly, increasing from $12.1 million in 2008, to $47.7 million in 2010, we expect that our revenue growth rate will decline in the future as a result of a variety of
factors, including the maturation of our business and the gradual decline in the number of major geographic markets, especially within the United States, to which we have not already expanded, and you should not rely on the revenue growth of any
prior quarterly or annual period as an indication of our future performance. We also expect our costs to increase in future periods as we continue to expend substantial financial resources on:



product and feature development;



sales and marketing;



our technology infrastructure;



domestic and international expansion efforts;



strategic opportunities, including commercial relationships and acquisitions; and



general administration, including legal and accounting expenses related to being a public company.

These investments may not result in increased revenue or growth in our business. If we are unable to maintain adequate revenue growth and to manage
our expenses, we may continue to incur significant losses in the future and may not be able to achieve or maintain profitability.

We rely on
traffic to our website from search engines like Google, Yahoo! and Bing. If our website fails to rank prominently in unpaid search results, traffic to our website could decline and our business would be adversely affected.

Our success depends in part on our ability to attract users through unpaid Internet search results on search engines like Google, Yahoo! and Bing.
The number of users we attract to our website from search engines is due in large part to how and where our website ranks in unpaid search results. These rankings can be affected by a number of factors, many of which are not in our direct control,
and they may change frequently. For example, a search engine may change its ranking algorithms, methodologies or design layouts. As a result, links to our website may not be prominent enough to drive traffic to our website, and we may not be in a
position to influence the results. In some instances, search engine companies may change these rankings in order to promote their own competing products or services or the products or services of one or more of our competitors. Our website has
experienced fluctuations in search result rankings in the past, and we anticipate fluctuations in the future. Any reduction in the number of users directed to our website could adversely impact our business and results of operations.

Google in particular is the most significant source of traffic to our website accounting for more than half of the visits to our website from
Internet searches during the nine months ended September 30, 2011. Our success depends on our ability to maintain a prominent presence in search results for queries regarding local businesses on Google. Google has removed links to our website
from portions of its web search product, and has promoted its own competing products, including Googles local products, in its search results. Given the large volume of traffic to our website and the importance of the placement and display of
results of a users search, similar actions in the future could have a substantial negative effect on our business and results of operations.

If users do not value the quality and reliability of the reviews, photos and other content that we display on
our platform, they may stop or reduce the use of our products, which could adversely impact the growth of our business.

Our
success depends on the quality of the reviews, photos and other content that we show on our platform, including whether they are helpful, up-to-date, unbiased, relevant, unique and reliable. If users do not value the content on our platform, they
may stop or reduce the use of our products, and traffic to our website and on our mobile app will decline. If our user traffic declines, our advertisers may stop or reduce the amount of advertising on our platform. As a result, our business could be
negatively affected if we fail to obtain high quality content from our contributors, or if the content we display is perceived to be unhelpful, out-of-date, biased, irrelevant, not unique or unreliable. We must therefore ensure that our products and
features are attractive to users, and encourage them to contribute. In addition, users who contribute content to our platform may provide content to our competitors or subsequently remove their content from our platform. If they do so, the value of
our content may decline relative to other available products and services, and our business may be harmed.

While we attempt to filter
or remove content that may be offensive, biased, unreliable or otherwise unhelpful, we cannot guarantee the effectiveness or adequacy of these efforts. If we fail to filter or remove a significant amount of content that is biased, unreliable, or
otherwise unhelpful, or if we mistakenly filter or remove a significant amount of valuable content, our reputation and brand may be harmed, users may stop using our products and our business and results of operations could be adversely affected.

Our business depends on a strong brand, and any failure to maintain, protect and enhance our brand would hurt our ability to retain or expand our
base of users and advertisers, or our ability to increase their level of engagement.

We have developed a strong brand that we
believe has contributed significantly to the success of our business. Maintaining, protecting and enhancing the Yelp brand is critical to expanding our base of users, advertisers and partners and increasing their engagement with our
solutions, and will depend largely on our ability to maintain consumer trust in our solutions and in the quality and integrity of the user content and other information found on our website and mobile app, which we may not do successfully. If we do
not successfully maintain a strong brand, our business could be harmed.

Our trademarks are an important element of our brand. We have
faced in the past, and may face in the future, oppositions from third parties to our applications to register key trademarks in foreign jurisdictions in which we expect to expand our presence. If we are unsuccessful in defending against these
oppositions, our trademark applications may be denied. Whether or not our trademark registration applications are denied, third parties may claim that our trademarks infringe their rights. As a result, we could be forced to pay significant
settlement costs or cease the use of these trademarks and associated elements of our brand in those or other jurisdictions. Doing so could harm our brand or brand recognition and adversely affect our business, financial condition and results of
operation.

Negative publicity could adversely affect our reputation and brand.

Negative publicity about our company, including our technology, sales practices, personnel or customer service, could diminish confidence in and the
use of our products. The media has previously reported allegations that we manipulate our reviews, rankings and ratings in favor of our advertisers and against non-advertisers. Our reputation and brand, the traffic to our website and mobile app, and
our business may suffer if these allegations persist or if users otherwise perceive that content on our website and mobile app is manipulated or biased. In addition, our website and mobile app serve as a platform for expression by our users, and
third parties or the public at large may attribute the political or other sentiments expressed by users on our platform to us, which could harm our reputation.

If we fail to maintain and expand our base of advertisers, our revenue and our business will be harmed.

In the nine months ended September 30, 2011, substantially all of our revenue was generated by the sale of advertising
products. Our ability to grow our business depends on our ability to maintain and expand our advertiser base. To do so, we must convince prospective advertisers of the benefits of our products, including those who may not be familiar with our
products (such as those in new markets). We must also convince existing and prospective advertisers alike that our advertising products work to their benefit. Many of these businesses are more accustomed to using more traditional methods of
advertising, such as newspapers or print yellow pages directories. Failure to maintain and expand the advertiser base could harm our business.

Our advertisers do not typically have long-term obligations to purchase our products. In addition, we rely heavily on advertising spend by small and medium-sized local businesses, which have historically
experienced high failure rates and often have limited advertising budgets. As a result, we may experience attrition in our advertisers in the ordinary course of business resulting from several factors, including losses to competitors, lower priced
competitors, perceptions that our advertising solutions are unnecessary or ineffective, declining advertising budgets, closures and bankruptcies. We must continually add new advertisers both to replace advertisers who choose not to renew their
advertising or who go out of business, or otherwise fail to fulfill their advertising contracts with us, and to grow our business. Our advertisers decisions to renew depend on a number of factors, including the degree of satisfaction with our
products and their ability to continue their operations and spending levels. The ratings and reviews that businesses receive from our users may also affect advertising decisions by current and prospective advertisers. For instance, favorable ratings
and reviews, on the one hand, could be perceived as obviating the need to advertise, and unfavorable ratings and reviews, on the other, could discourage businesses from advertising to an audience they perceive as hostile or cause them to form a
negative opinion of our products and user base which could discourage them from doing business with us. If our advertisers increase their rates of non-renewal or if we experience significant advertiser attrition or contract breach, or if we are
unable to attract new advertisers in numbers greater than the number of advertisers that we lose, our client base will decrease and our business, financial condition and results of operations would be harmed.

If we fail to expand effectively into new markets, both domestically and abroad, our revenue and our business will be harmed.

We intend to expand our operations into new markets, both domestically and abroad. We may incur losses or otherwise fail to enter new markets
successfully. Our expansion into new markets places us in competitive environments with which we are unfamiliar and involves various risks, including the need to invest significant resources and the possibility that returns on such investments will
not be achieved for several years, or at all. In attempting to establish a presence in new markets, we expect, as we have in the past, to incur significant expenses and face various other challenges, such as expanding our sales force and community
management personnel to cover those new markets. Our current and any future expansion plans will require significant resources and management attention. Furthermore, we have already entered many of the largest markets in the United States and
further expansion in smaller markets may not yield similar results or sustain our growth.

Our international operations involve additional risks, and our exposure to these risks will increase as we
expand internationally.

We have started to expand our operations internationally. We expect to expand our international
operations significantly by accessing new markets abroad and expanding our offerings in new languages. Our platform is now available in English and several other languages. However, we may have difficulty modifying our technology and content for use
in non-English-speaking markets or fostering new communities in non-English-speaking markets. Our ability to manage our business and conduct our operations internationally requires considerable management attention and resources, and is subject to
the particular challenges of supporting a rapidly growing business in an environment of multiple languages, cultures, customs, legal systems, alternative dispute systems, regulatory systems and commercial infrastructures. Furthermore, in most
international markets, we would not be the first entrant, and our competitors may be better positioned than we are to succeed. Expanding internationally may subject us to risks that we have either not faced before or increase our exposure to risks
that we currently face, including risks associated with:

increased competition from local websites and guides and potential preferences by local populations for local providers;



compliance with applicable foreign laws and regulations, including different privacy, censorship and liability standards and regulations and different
intellectual property laws;



providing solutions in different languages for different cultures, which may require that we modify our solutions and features to ensure that they are culturally
relevant in different countries;



the enforceability of our intellectual property rights;



credit risk and higher levels of payment fraud;



compliance with anti-bribery laws, including compliance with the Foreign Corrupt Practices Act and the U.K. Bribery Act;



currency exchange rate fluctuations;



foreign exchange controls that might prevent us from repatriating cash earned outside the United States;



political and economic instability in some countries;



double taxation of our international earnings and potentially adverse tax consequences due to changes in the tax laws of the United States or the foreign
jurisdictions in which we operate; and



higher costs of doing business internationally.

Many people use smartphones and other mobile devices to access information about local businesses. If we are not successful in developing solutions that
generate revenue from our mobile application, or those solutions are not widely adopted, our results of operations and business could be adversely affected.

The number of people who access information about local businesses through mobile devices, including smartphones and handheld tablets or computers, has increased dramatically in the past few years and is expected
to increase. Because we do not currently deliver advertising on our mobile app, we have not materially monetized our mobile app to date. If consumers use our mobile app at the expense of our website, our advertisers may stop or reduce advertising on
our website, and they may

be unable to advertise on our mobile app unless we develop effective mobile advertising solutions that are compelling to them. Similarly, we may be unable to attract new advertisers unless we
develop effective mobile advertising solutions. At the same time, it is important that any mobile advertising solutions that we develop do not adversely affect our users experience. If we fail to develop effective advertising solutions, if our
solutions alienate our user base, or if our solutions are not widely adopted or are insufficiently profitable, our business may suffer.

Additionally, as new mobile devices and platforms are released, it is difficult to predict the problems we may encounter in developing products for
these alternative devices and platforms, and we may need to devote significant resources to the creation, support, and maintenance of such products. In addition, if we experience difficulties in the future in integrating our mobile app into mobile
devices or if problems arise with our relationships with providers of mobile operating systems or mobile application download stores, such as those of Apple or Google, if our applications receive unfavorable treatment compared to the promotion and
placement of competing applications, such as the order of our products in the Apple AppStore, or if we face increased costs to distribute our mobile app, our future growth and our results of operations could suffer.

We expect to face increased competition in the market.

The market for information regarding local businesses and advertising is intensely competitive and rapidly changing. With the emergence of new technologies and market entrants, competition is likely to intensify in
the future. Our competitors include, among others; offline media companies and service providers; newspaper, television, and other media companies, Internet search engines, such as Google, Yahoo! and Bing; and various other online service providers.
Our competitors may enjoy competitive advantages, such as greater name recognition, longer operating histories, substantially greater market share, large existing user bases and substantially greater financial, technical and other resources. These
companies may use these advantages to offer products similar to ours at a lower price, develop different products to compete with our current solutions and respond more quickly and effectively than we do to new or changing opportunities,
technologies, standards or client requirements. In particular, major Internet companies, such as Google, Facebook, Yahoo! and Microsoft may be more successful than us in developing and marketing online advertising offerings directly to local
businesses, and many of our advertisers and potential advertisers may choose to purchase online advertising services from these competitors and may reduce their purchases of our products. In addition, many of our current and potential competitors
have established marketing relationships with and access to larger client bases. As the market for local online advertising increases, new competitors, business models and solutions are likely to emerge. We also compete with these companies for the
attention of contributors and consumers, and may experience decreases in both if our competitors offer more compelling environments. For all of these reasons, we may be unable to maintain or grow the number of people who use our website and mobile
app and the number of businesses that use our advertising solutions and we may face pressure to reduce the price of our advertising solutions, in which case our business, results of operations and financial condition will be harmed.

The traffic to our website and mobile application may decline and our business may suffer if other companies copy information from our platform and publish
or aggregate it with other information for their own benefit.

From time to time, other companies copy information from our
platform, through website scraping, robots or other means, and publish or aggregate it with other information for their own benefit. For example, in parts of 2010 and 2011, Google incorporated content from our website into its own local product
without our permission. Googles users, as a result, may not have visited our website because they found the information they sought on Google. Our Chief Executive Officer recently testified before the U.S. Senate Committee on the Judiciary,
Subcommittee on Antitrust, Competition

Policy and Consumer Rights regarding Googles practices in this regard. While we do not believe that Google is still incorporating our content within its local products, we have no assurance
that Google or other companies will not copy, publish or aggregate content from our platform in the future.

When third parties copy,
publish, or aggregate content from our platform, it makes them more competitive, and decreases the likelihood that consumers will visit our website or use our mobile app to find the information they seek, which could negatively affect our business,
results of operations and financial condition. We may not be able to detect such third party conduct in a timely manner and, even if we could, we may not be able to prevent it. In some cases, particularly in the case of websites operating outside of
the United States, our available remedies may be inadequate to protect us against such practices. In addition, we may be required to expend significant financial or other resources to successfully enforce our rights.

The impact of worldwide economic conditions, including the resulting effect on advertising spending by local businesses, may adversely affect our business,
operating results and financial condition.

Our performance is subject to worldwide economic conditions and their impact on
levels of advertising spend by small and medium-sized businesses, which may be disproportionately affected by economic downturns. To the extent that the current economic slowdown continues, or worldwide economic conditions materially deteriorate,
our existing and potential advertising clients may no longer consider investment in our advertising solutions a necessity, or may elect to reduce advertising budgets. Historically, economic downturns have resulted in overall reductions in
advertising spending. In particular, web-based advertising solutions may be viewed by some of our existing and potential advertising clients as a lower priority and could cause advertisers to reduce the amounts they spend on advertising, terminate
their use of our solutions or default on their payment obligations to us. In addition, economic conditions may adversely impact levels of consumer spending, which could adversely impact the numbers of consumers visiting our website and mobile app.
Consumer purchases of discretionary items generally decline during recessionary periods and other periods in which disposable income is adversely affected. If spending at many of the local businesses reviewed on our website or mobile app declines,
businesses may be less likely to use our advertising products, which could have a material adverse effect on our financial condition and results of operations.

We face potential liability and expense for legal claims based on the content on our platform.

We face potential liability and expense for legal claims relating to the information that we publish on our website and mobile app, including claims for defamation, libel, negligence and copyright or trademark
infringement, among others. For example, businesses in the past have claimed, and may in the future claim, that we are responsible for defamatory reviews posted by our users. We expect claims like these to continue, and potentially increase in
proportion to the amount of content on our platform. These claims could divert management time and attention away from our business and result in significant costs to investigate and defend, regardless of the merits of the claims. In some instances,
we may elect or be compelled to remove content or may be forced to pay substantial damages if we are unsuccessful in our efforts to defend against these claims. If we elect or are compelled to remove valuable content from our website or mobile app,
our platform may become less useful to consumers and our traffic may decline, which could have a negative impact on our business and financial performance.

Our business could suffer if the jurisdictions in which we operate change the way in which they regulate the Internet, including regulations relating to user-generated content and privacy.

Governments may adopt laws and regulations that make it more difficult to operate our business, both domestically and abroad. For example, some
federal legislators have called for increased regulation of the use of information concerning consumer behavior on the Internet, including certain

targeted advertising practices. Others have called for changes affecting the immunities afforded to websites that publish user-generated content. In addition, the European Union is in the process
of proposing reforms to its existing data protection legal framework, which may result in a greater compliance burden for companies with users in Europe.

Our business, including our ability to operate and expand internationally, could be adversely affected if legislation or regulations are adopted, interpreted, or implemented in a manner that is inconsistent with
our current business practices and that require changes to these practices or the design of our website, products or features. In particular, the success of our business has depended, and we expect will continue to depend, on our ability to use the
content and other information that our users share with us. Therefore, our business could be harmed by any significant change to applicable laws, regulations or industry practices regarding the use or disclosure of the content that our users share
through our website and mobile app. Such changes may require us to modify our products and features, possibly in a material manner, and may limit our ability to make use of the content and other information that our users generate on our website and
mobile app.

If we fail to manage our growth effectively, our brand, results of operations and business could be harmed.

We have experienced rapid growth in our headcount and operations, which places substantial demands on management and our operational infrastructure.
Most of our employees have been with us for fewer than two years. We intend to make substantial investments in our technology, sales and marketing and community management organizations. As we continue to grow, we must effectively integrate, develop
and motivate a large number of new employees, including employees in international markets, while maintaining the beneficial aspects of our company culture. If we do not manage the growth of our business and operations effectively, the quality of
our platform and efficiency of our operations could suffer, which could harm our brand, results of operations and business.

We may not timely and
effectively scale and adapt our existing technology and network infrastructure to ensure that our platform is accessible.

It is
important to our success that users in all geographies be able to access our platform at all times. We have previously experienced, and may experience in the future, service disruptions, outages and other performance problems due to a variety of
factors, including infrastructure changes, human or software errors, capacity constraints due to an overwhelming number of users accessing our platform simultaneously, and denial of service or fraud or security attacks. In some instances, we may not
be able to identify the cause or causes of these performance problems within an acceptable period of time. It may become increasingly difficult to maintain and improve the availability of our platform, especially during peak usage times and as our
solutions become more complex and our user traffic increases. If our platform is unavailable when users attempt to access it or it does not load as quickly as they expect, users may seek other services to obtain the information for which they are
looking, and may not return to our platform as often in the future, or at all. This would negatively impact our ability to attract users and advertisers and increase engagement on our website and mobile app. We expect to continue to make significant
investments to maintain and improve the availability of our platform and to enable rapid releases of new features and products. To the extent that we do not effectively address capacity constraints, upgrade our systems as needed and continually
develop our technology and network architecture to accommodate actual and anticipated changes in technology, our business and operating results may be harmed.

We recently implemented a disaster recovery program, which allows us to move our platform to a back-up data center in the event of a catastrophe. Although this program is functional, it does not yet provide a real
time back-up data center, so if our primary data center shuts down, there will be a period of time that our platform will remain unavailable while the transition to the back-up data center takes place.

We are, and may in the future be, subject to disputes and assertions by third parties that we violate their
rights. These disputes may be costly to defend and could harm our business and operating results.

We currently face, and we
expect to face from time to time in the future, allegations that we have violated the rights of third parties, including patent, trademark, copyright and other intellectual property rights. For example, third parties have sued us for allegedly
violating their patent rights (we are currently a defendant in seven such suits, all of which involve plaintiffs targeting multiple defendants in the same or similar suits), an action was filed against us on behalf of current and former employees
claiming that we violated labor and other laws (we have agreed in principle, subject to court approval, to settle the suit for up to $1.3 million) and various businesses have sued us alleging that we manipulate Yelp reviews in order to coerce
them and other businesses to pay for Yelp advertising (one such suit was voluntarily dismissed, and two others were consolidated and recently dismissed with prejudice, although the plaintiffs are seeking an appeal).

Other claims against us can be expected to be made in the future. Even if the claims are without merit, the costs associated with defending these
types of claims may be substantial, both in terms of time, money, and management distraction. In particular, patent and other intellectual property litigation may be protracted and expensive, and the results are difficult to predict and may require
us to stop offering certain features, purchase licenses or modify our products and features while we develop non-infringing substitutes or may result in significant settlement costs. We do not own any patents, and, therefore, may be unable to deter
competitors or others from pursuing patent or other intellectual property infringement claims against us.

The results of litigation and
claims to which we may be subject cannot be predicted with certainty. Even if these matters do not result in litigation or are resolved in our favor or without significant cash settlements, these matters, and the time and resources necessary to
litigate or resolve them, could harm our business, results or operations and reputation.

Some of our solutions contain open source software,
which may pose particular risks to our proprietary software and solutions.

We use open source software in our solutions and will
use open source software in the future. From time to time, we may face claims from third parties claiming ownership of, or demanding release of, the open source software and/or derivative works that we developed using such software (which could
include our proprietary source code), or otherwise seeking to enforce the terms of the applicable open source license. These claims could result in litigation and could require us to purchase a costly license or cease offering the implicated
solutions unless and until we can re-engineer them to avoid infringement. This re-engineering process could require significant additional research and development resources. In addition to risks related to license requirements, use of certain open
source software can lead to greater risks than use of third party commercial software, as open source licensors generally do not provide warranties or controls on the origin of software. Any of these risks could be difficult to eliminate or manage,
and, if not addressed, could have a negative effect on our business and operating results.

We make the consumer experience our highest priority.
Our dedication to making decisions based primarily on the best interests of consumers may cause us to forgo short-term gains and advertising revenue.

We base many of our decisions upon the best interests of the consumers who use our platform. We believe that this approach has been essential to our success in increasing our user growth rate and

engagement, and has served the long-term interests of our company and our stockholders. In the past, we have forgone, and we may in the future forgo, certain expansion or revenue opportunities
that we do not believe are in the best interests of consumers, even if such decisions negatively impact our results of operations. In particular, our approach of putting our consumers first may negatively impact our relationships with our existing
or prospective advertisers. For example, we typically refuse to remove legitimate negative reviews and ratings of local businesses that advertise on our website. Certain advertisers may therefore perceive us as an impediment to their success as a
result of negative reviews and ratings. This practice could result in a loss of advertisers, which in turn could harm our results of operations.

We rely on third-party service providers for many aspects of our business.

We rely on data about local businesses from third parties, including various yellow pages and other third parties that license such information to us. We also rely on third parties for other aspects of our
business, such as mapping functionality and administrative software solutions. If these third parties experience difficulty meeting our requirements or standards, or our licenses are revoked or not renewed, it could make it difficult for us to
operate some aspects of our business, which could damage our reputation. In addition, if such third party service providers were to cease operations, temporarily or permanently, face financial distress or other business disruption, increase their
fees or if our relationships with these providers deteriorate, we could suffer increased costs and delays in our ability to provide consumers and advertisers with content or provide similar services until an equivalent provider could be found or we
could develop replacement technology or operations. In addition, if we are unsuccessful in choosing or finding high-quality partners, if we fail to negotiate cost-effective relationships with them, or if we ineffectively manage these relationships,
it could have an adverse impact on our business and financial performance.

We expect a number of factors to cause our operating results to
fluctuate on a quarterly and annual basis, which may make it difficult to predict our future performance.

Our operating results
could vary significantly from quarter to quarter and year to year because of a variety of factors, many of which are outside of our control. As a result, comparing our operating results on a period-to-period basis may not be meaningful. In addition
to other risk factors discussed in this section, factors that may contribute to the variability of our quarterly and annual results include:



our ability to attract new local business advertisers and retain existing advertisers;

costs associated with defending intellectual property infringement and other claims and related judgments or settlements;



changes in government regulation affecting our business;



interruptions in service and any related impact on our reputation;



the attraction and retention of qualified employees and key personnel;



our ability to choose and effectively manage third party service providers;



the impact of fluctuations in currency exchange rates;



our ability to successfully manage any acquisitions of businesses, solutions or technologies;



the effects of natural or man-made catastrophic events;



changes in consumer behavior with respect to local businesses;



the effectiveness of our internal controls; and



changes in our tax rates or exposure to additional tax liabilities.

Because we recognize most of the revenue from our advertising products over the term of an agreement, a significant downturn in our business may not be immediately reflected in our results of operations.

We recognize revenue from sales of our advertising products over the terms of the applicable agreements, which are generally
three, six or 12 months. As a result, a significant portion of the revenue we report in each quarter is generated from agreements entered into during previous quarters. Consequently, a decline in new or renewed agreements in any one quarter may not
significantly impact our revenue in that quarter but will negatively affect our revenue in future quarters. In addition, we may be unable to adjust our fixed costs in response to reduced revenue. Accordingly, the effect of significant declines in
advertising sales may not be reflected in our short-term results of operations.

We rely on the performance of highly skilled personnel, and if we
are unable to attract, retain and motivate well-qualified employees, our business could be harmed.

We believe our success has
depended, and continues to depend, on the efforts and talents of our employees, including Jeremy Stoppelman, our Chief Executive Officer, Geoff Donaker, our Chief Operating Officer, and our software engineers, marketing professionals and advertising
sales staff. Our future success depends on our continuing ability to attract, develop, motivate and retain highly qualified and skilled employees. Qualified individuals are in high demand, and we may incur significant costs to attract them. In
addition, the loss of any of our senior management or key employees could materially adversely affect our ability to execute our business plan, and we may not be able to find adequate replacements. All of our officers and other U.S. employees are
at-will employees, which means they may terminate their employment relationship with us at any time, and their knowledge of our business and industry would be extremely difficult to replace. We cannot ensure that we will be able to retain the
services of any members of our senior management or other key employees. If we do not succeed in attracting well-qualified employees or retaining and motivating existing employees, our business could be harmed.

Failure to protect or enforce our intellectual property rights could harm our business and results of operations.

We regard the protection of our trade secrets, copyrights, trademarks and domain names as critical to our success. In particular, we must maintain,
protect and enhance the Yelp brand. We

pursue the registration of our domain names, trademarks, and service marks in the United States and in certain jurisdictions abroad. We strive to protect our intellectual property rights by
relying on federal, state and common law rights, as well as contractual restrictions. We typically enter into confidentiality and invention assignment agreements with our employees and contractors, and confidentiality agreements with parties with
whom we conduct business in order to limit access to, and disclosure and use of, our proprietary information. However, these contractual arrangements and the other steps we have taken to protect our intellectual property may not prevent the
misappropriation or disclosure of our proprietary information nor deter independent development of similar technologies by others.

Effective trade secret, copyright, trademark and domain name protection is expensive to develop and maintain, both in terms of initial and ongoing
registration requirements and expenses and the costs of defending our rights. We are seeking to protect our trademarks and domain names in an increasing number of jurisdictions, a process that is expensive and may not be successful or which we may
not pursue in every location. Litigation may be necessary to enforce our intellectual property rights, protect our respective trade secrets or determine the validity and scope of proprietary rights claimed by others. Any litigation of this nature,
regardless of outcome or merit, could result in substantial costs and diversion of management and technical resources, any of which could adversely affect our business and operating results. We may incur significant costs in enforcing our trademarks
against those who attempt to imitate our Yelp brand. If we fail to maintain, protect and enhance our intellectual property rights, our business and operating results may be harmed.

We may be unable to continue to use the domain names that we use in our business, or prevent third parties from acquiring and using domain names that
infringe on, are similar to, or otherwise decrease the value of our brand or our trademarks or service marks.

We have registered
domain names for our website that we use in our business, such as Yelp.com. If we lose the ability to use a domain name, whether due to trademark claims, failure to renew the applicable registration, or any other cause, we may be forced to market
our products under a new domain name, which could cause us substantial harm, or to incur significant expense in order to purchase rights to the domain name in question. In addition, our competitors and others could attempt to capitalize on our brand
recognition by using domain names similar to ours. Domain names similar to ours have been registered in the United States and elsewhere. We may be unable to prevent third parties from acquiring and using domain names that infringe on, are similar
to, or otherwise decrease the value of our brand or our trademarks or service marks. Protecting and enforcing our rights in our domain names may require litigation, which could result in substantial costs and diversion of managements
attention.

If our security measures are compromised, or if our platform is subject to attacks that degrade or deny the ability of users to access
our content, users may curtail or stop use of our platform.

Like all online services, our platform is vulnerable to computer
viruses, break-ins, phishing attacks, attempts to overload our servers with denial-of-service or other attacks and similar disruptions from unauthorized use of our computer systems, any of which could lead to interruptions, delays, or website
shutdowns, causing loss of critical data or the unauthorized disclosure or use of personally identifiable or other confidential information. If we experience compromises to our security that result in performance or availability problems, the
complete shutdown of our website, or the loss or unauthorized disclosure of confidential information, our users or advertisers may lose trust and confidence in us, and decrease the use of our platform or stop using our platform in its entirety.
Because the techniques used to obtain unauthorized access, disable or degrade service, or sabotage systems change frequently, and often are not recognized until launched against a target and may originate from less regulated and remote areas around
the world, we may be unable to proactively address these techniques or to implement adequate preventative measures. Any or all of these issues

could negatively impact our ability to attract new users or deter current users from returning and increase engagement and traffic, cause existing or potential advertisers to cancel their
contracts or subject us to third party lawsuits, regulatory fines or other action or liability, thereby harming our results of operations.

We
process, store and use personal information and other data, which subjects us to governmental regulation and other legal obligations related to privacy. Our actual or perceived failure to comply with such obligations could harm our business.

We receive, store and process personal information and other user data, including credit card information for certain users.
There are numerous federal, state and local laws around the world regarding privacy and the storing, sharing, use, processing, disclosure and protection of personal information and other user data, the scope of which are changing, subject to
differing interpretations, and may be inconsistent between countries or conflict with other rules. We generally comply with industry standards and are subject to the terms of our privacy policies and privacy-related obligations to third parties
(including, in certain instances, voluntary third party certification bodies such as TRUSTe). It is possible that these obligations may be interpreted and applied in a manner that is inconsistent from one jurisdiction to another and may conflict
with other rules or our practices. Any failure or perceived failure by us to comply with our privacy policies, our privacy-related obligations to users or other third parties, or our privacy-related legal obligations, or any compromise of security
that results in the unauthorized release or transfer of personally identifiable information or other user data, may result in governmental enforcement actions, litigation or negative publicity and could cause our users and advertisers to lose trust
in us, which could have an adverse effect on our business. Additionally, if third parties with whom we work, such as advertisers, vendors or developers, violate applicable laws or our policies, such violations may also put our users
information at risk and could have an adverse effect on our business.

Our business is subject to a variety of U.S. and foreign laws, many of
which are unsettled and still developing and which could subject us to claims or otherwise harm our business.

We are subject to
a variety of laws in the United States and abroad, including laws regarding data retention, privacy, distribution of user-generated content and consumer protection, that are frequently evolving and developing. The scope and interpretation of the
laws that are or may be applicable to us are often uncertain and may be conflicting, particularly outside the United States. For example, laws relating to the liability of providers of online services for activities of their users and other third
parties are currently being tested by a number of claims, including actions based on invasion of privacy and other torts, unfair competition, copyright and trademark infringement, and other theories based on the nature and content of the materials
searched, the ads posted, or the content provided by users. In addition, regulatory authorities around the world are considering a number of legislative and regulatory proposals concerning data protection and other matters that may be applicable to
our business. It is also likely that if our business grows and evolves and our solutions are used in a greater number of countries, we will become subject to laws and regulations in additional jurisdictions. It is difficult to predict how existing
laws will be applied to our business and the new laws to which we may become subject.

If we are not able to comply with these laws or
regulations or if we become liable under these laws or regulations, we could be directly harmed, and we may be forced to implement new measures to reduce our exposure to this liability. This may require us to expend substantial resources or to
discontinue certain products or features, which would negatively affect our business. In addition, the increased attention focused upon liability issues as a result of lawsuits and legislative proposals could harm our reputation or otherwise impact
the growth of our business. Any costs incurred to prevent or mitigate this potential liability could also harm our business and operating results.

Domestic and foreign laws may be interpreted and enforced in ways that impose new obligations on us with
respect to Yelp Deals, which may harm our business and results of operations.

Our Yelp Deals products may be deemed gift
certificates, store gift cards, general-use prepaid cards, or other vouchers, or gift cards, subject to, among other laws, the federal Credit Card Accountability Responsibility and Disclosure Act of 2009 (Credit CARD Act of
2009) and similar federal, state and foreign laws. Many of these laws include specific disclosure requirements and prohibitions or limitations on the use of expiration dates and the imposition of certain fees. Various companies that provide
deal products similar to ours are currently defendants in purported class action lawsuits that have been filed in federal and state court claiming that their deal products are subject to the Credit CARD Act of 2009 and various state laws governing
gift cards and that the defendants have violated these laws as a result of expiration dates and other restrictions they have placed on their deals. Similar lawsuits have been filed in other locations in which we plan to sell our Yelp Deals, such as
the Canadian province of Ontario, alleging similar violations of provincial legislation governing gift cards.

The application of various
other laws and regulations to our products, and particularly our Yelp Deals, is uncertain. These include laws and regulations pertaining to unclaimed and abandoned property, partial redemption, revenue-sharing restrictions on certain trade groups
and professions, sales and other local taxes and the sale of alcoholic beverages. In addition, we may become, or be determined to be, subject to federal, state or foreign laws regulating money transmitters or aimed at preventing money laundering or
terrorist financing, including the Bank Secrecy Act, the USA PATRIOT Act and other similar future laws or regulations.

If we become
subject to claims or are required to alter our business practices as a result of current or future laws and regulations, our revenue could decrease, our costs could increase and our business could otherwise be harmed. In addition, the costs and
expenses associated with defending any actions related to such additional laws and regulations and any payments of related penalties, fines, judgments or settlements could harm our business.

We may require additional capital to support business growth, and this capital might not be available on acceptable terms, if at all.

We intend to continue to make investments to support our business growth and may require additional funds to respond to business challenges,
including the need to develop new features and products or enhance our existing services, improve our operating infrastructure or acquire complementary businesses and technologies. Accordingly, we may need to engage in equity or debt financings to
secure additional funds. If we raise additional funds through future issuances of equity or convertible debt securities, our existing stockholders could suffer significant dilution, and any new equity securities we issue could have rights,
preferences and privileges superior to those of holders of our Class A common stock. Any debt financing we secure in the future could involve restrictive covenants relating to our capital raising activities and other financial and operational
matters, which may make it more difficult for us to obtain additional capital and to pursue business opportunities, including potential acquisitions. We may not be able to obtain additional financing on terms favorable to us, if at all. If we are
unable to obtain adequate financing or financing on terms satisfactory to us when we require it, our ability to continue to support our business growth and to respond to business challenges could be significantly impaired, and our business may be
harmed.

We may acquire other companies or technologies, which could divert our managements attention, result in
additional dilution to our stockholders and otherwise disrupt our operations and harm our operating results.

Our success will
depend, in part, on our ability to expand our product offerings and grow our business in response to changing technologies, user and advertiser demands and competitive pressures. In some circumstances, we may determine to do so through the
acquisition of complementary businesses or technologies rather than through internal development. We do not have experience acquiring other businesses and technologies. The pursuit of potential acquisitions may divert the attention of management and
cause us to incur expenses in identifying, investigating and pursuing suitable acquisitions, whether or not they are consummated. Furthermore, even if we successfully acquire additional businesses or technologies, we may not be able to integrate the
acquired personnel, operations and technologies successfully, or effectively manage the combined business following the acquisition. We also may not achieve the anticipated benefits from the acquired business or technology. In addition, we may
unknowingly inherit liabilities from future acquisitions that arise after the acquisition and are not adequately covered by indemnities. Acquisitions could also result in dilutive issuances of equity securities or the incurrence of debt, which could
adversely affect our results of operations. If an acquired business or technology fails to meet our expectations, our business, results of operations and financial condition may suffer.

Our business is subject to the risks of earthquakes, fires, floods and other natural catastrophic events and to interruption by man-made problems such as computer viruses or terrorism.

Our systems and operations are vulnerable to damage or interruption from earthquakes, fires, floods, power losses, telecommunications failures,
terrorist attacks, acts of war, human errors, break-ins and similar events. For example, a significant natural disaster, such as an earthquake, fire or flood, could have a material adverse impact on our business, operating results and financial
condition, and our insurance coverage may be insufficient to compensate us for losses that may occur. Our U.S. corporate offices and one of the facilities we lease to house our computer and telecommunications equipment are located in the San
Francisco Bay Area, a region known for seismic activity. In addition, acts of terrorism, which may be targeted at metropolitan areas that have higher population density than rural areas, could cause disruptions in our or our local business
advertisers businesses or the economy as a whole. Our servers may also be vulnerable to computer viruses, break-ins and similar disruptions from unauthorized tampering with our computer systems, which could lead to interruptions, delays, loss
of critical data or the unauthorized disclosure of confidential client data. We may not have sufficient protection or recovery plans in certain circumstances, such as natural disasters affecting the San Francisco Bay Area, and our business
interruption insurance may be insufficient to compensate us for losses that may occur. As we rely heavily on our servers, computer and communications systems and the Internet to conduct our business and provide high quality customer service, such
disruptions could negatively impact our ability to run our business and either directly or indirectly disrupt our local business advertisers businesses, which could have an adverse affect on our business, operating results and financial
condition.

The intended tax benefits of our corporate structure and intercompany arrangements depend on the application of the tax laws of
various jurisdictions and on how we operate our business.

Our corporate structure and intercompany arrangements, including the
manner in which we develop and use our intellectual property and the transfer pricing of our intercompany transactions, are intended to reduce our worldwide effective tax rate. The application of the tax laws of various jurisdictions, including the
United States, to our international business activities is subject to interpretation and depends on our ability to operate our business in a manner consistent with our corporate structure and intercompany arrangements. The taxing authorities of the
jurisdictions in which we operate may challenge our methodologies for valuing developed technology or intercompany

arrangements, including our transfer pricing, or determine that the manner in which we operate our business does not achieve the intended tax consequences, which could increase our worldwide
effective tax rate and harm our financial position and results of operations.

The enactment of legislation implementing changes in the U.S.
taxation of international business activities or the adoption of other tax reform policies could materially impact our financial condition and results of operations.

The current administration has made public statements indicating that it has made international tax reform a priority, and key members of the U.S. Congress have conducted hearings and proposed new legislation.
Recent changes to U.S. tax laws, including limitations on the ability of taxpayers to claim and utilize foreign tax credits and the deferral of certain tax deductions until earnings outside of the United States are repatriated to the United States,
as well as changes to U.S. tax laws that may be enacted in the future, could impact the tax treatment of our foreign earnings. Due to the expanding scale of our international business activities, any changes in the U.S. taxation of such activities
may increase our worldwide effective tax rate and harm our financial condition and results of operations.

Risks Related to this Offering and
Ownership of Our Class A Common Stock

The dual class structure of our common stock has the effect of concentrating voting control with
those stockholders who held our stock prior to this offering, including our founders, directors, executive officers and employees and their affiliates, and limiting your ability to influence corporate matters.

Our Class B common stock has 10 votes per share, and our Class A common stock, which is the stock we are offering in this initial public
offering, has one vote per share. Stockholders who hold shares of Class B common stock, including our founders, directors, executive officers and employees and their affiliates, will together beneficially own shares representing approximately
% of the voting power of our outstanding capital stock following this offering. Consequently, the holders of Class B common stock collectively will continue to be able to control all matters submitted to our stockholders
for approval even if their stock holdings represent less than 50% of the outstanding shares of our common stock. Because of the 10-to-1 voting ratio between our Class B and Class A common stock, the holders of our Class B common stock
collectively will continue to control a majority of the combined voting power of our common stock even when the shares of Class B common stock represent a small minority of all outstanding shares of our Class A and Class B common
stock. This concentrated control will limit your ability to influence corporate matters for the foreseeable future, and, as a result, the market price of our Class A common stock could be adversely affected.

Future transfers by holders of Class B common stock will generally result in those shares converting to Class A common stock, which will
have the effect, over time, of increasing the relative voting power of those holders of Class B common stock who retain their shares in the long term, which may include existing founders, officers and directors and their affiliates.

Our share price may be volatile, and you may be unable to sell your shares at or above the offering price, if at all.

The initial public offering price for the shares of our Class A common stock will be determined by negotiations between us and the
representative of the underwriters and may not be indicative of prices that will prevail in the trading market. The market price of our Class A common stock could be subject to wide fluctuations in response to many risk factors listed in this
section, and others beyond our control, including:

Furthermore, the stock markets recently have experienced extreme price and volume fluctuations that have affected and continue to affect the market prices of equity securities of many companies. These fluctuations
often have been unrelated or disproportionate to the operating performance of those companies. These broad market and industry fluctuations, as well as general economic, political and market conditions such as recessions, interest rate changes or
international currency fluctuations, may negatively impact the market price of our Class A common stock. If the market price of our Class A common stock after this offering does not exceed the initial public offering price, you may not
realize any return on your investment in us and may lose some or all of your investment. In the past, companies that have experienced volatility in the market price of their stock have been subject to securities class action litigation. We may be
the target of this type of litigation in the future. Securities litigation against us could result in substantial costs and divert our managements attention from other business concerns, which could harm our business.

No public market for our common stock currently exists, and an active public trading market may not develop or be sustained following this offering.

Prior to this offering, there has been no public market for our common stock. Although we have applied to list our Class A
common stock on the , an active trading market may not develop following the completion of this offering or, if developed, may
not be sustained. The lack of an active market may impair your ability to sell your shares at the time you wish to sell them or at a price that you consider reasonable. The lack of an active market may also reduce the fair value of your shares. An
inactive market may also impair our ability to raise capital to continue to fund operations by selling shares and may impair our ability to acquire other companies or technologies by using our shares as consideration.

We do not intend to pay dividends for the foreseeable future, and as a result your ability to achieve a return on your investment will depend on appreciation
in the price of our Class A common stock.

We have never declared or paid any cash dividends on our common stock and do not
intend to pay any cash dividends in the foreseeable future. We anticipate that we will retain all of our future earnings for use in the development of our business and for general corporate purposes. Any determination to pay dividends in the future
will be at the discretion of our board of directors.

Accordingly, investors must rely on sales of their Class A common stock after price appreciation, which may never occur, as the only way to realize any future gains on their investments.

Anti-takeover provisions in our charter documents and under Delaware law could make an acquisition of us more difficult, limit attempts by our
stockholders to replace or remove our current management and limit the market price of our Class A common stock.

Provisions
in our certificate of incorporation and bylaws, as amended and restated in connection with this offering, may have the effect of delaying or preventing a change of control or changes in our management. Our amended and restated certificate of
incorporation and amended and restated bylaws will include provisions that:



require that any action to be taken by our stockholders be effected at a duly called annual or special meeting and not by written consent;



specify that special meetings of our stockholders can be called only by our board of directors, the Chair of our board of directors, or our Chief Executive
Officer;



establish an advance notice procedure for stockholder proposals to be brought before an annual meeting, including proposed nominations of persons for election to
our board of directors;



prohibit cumulative voting in the election of directors;



provide that vacancies on our board of directors may be filled only by a majority of directors then in office, even though less than a quorum;



require the approval of our board of directors or the holders of a supermajority of our outstanding shares of capital stock to amend our bylaws and certain
provisions of our certificate of incorporation; and



reflect two classes of common stock, as discussed above.

These provisions may frustrate or prevent any attempts by our stockholders to replace or remove our current management by making it more difficult for stockholders to replace members of our board of directors,
which is responsible for appointing the members of our management. In addition, because we are incorporated in Delaware, we are governed by the provisions of Section 203 of the Delaware General Corporation Law, which generally prohibits a
Delaware corporation from engaging in any of a broad range of business combinations with any interested stockholder for a period of three years following the date on which the stockholder became an interested stockholder.

Our future depends in part on the interests and influence of key stockholders.

Following this offering, our directors, executive officers and holders of more than 5% of our common stock, some of whom are represented on our
board of directors, together with their affiliates, (including institutional investors such as Benchmark Capital, Bessemer Venture Partners and Elevation Partners) will beneficially own
shares our Class B common stock, or % of our outstanding capital stock, which will represent % of the voting power of our
outstanding capital stock. As a result, these stockholders will, immediately following this offering, be able to determine the outcome of matters submitted to our stockholders for approval. This ownership could affect the value of your shares of
common stock by, for example, these stockholders electing to delay, defer or prevent a change in corporate control, merger, consolidation, takeover or other business combination.

We may invest or spend the proceeds of this offering in ways with which you may not agree or in ways which may
not yield a return.

The net proceeds from the sale of shares by us in the offering may be used for general corporate purposes,
including working capital. We may also use a portion of the net proceeds to acquire complementary businesses, products, services or technologies. However, we do not have any agreements or commitments for any acquisitions at this time. Our management
will have considerable discretion in the application of the net proceeds, and you will not have the opportunity, as part of your investment decision, to assess whether the proceeds are being used appropriately. The net proceeds may be invested with
a view towards long-term benefits for our stockholders and this may not increase our operating results or market value. Until the net proceeds are used, they may be placed in investments that do not produce significant income or that may lose value.

If securities or industry analysts do not publish research or reports about our business, or publish negative reports about our business, our
share price and trading volume could decline.

The trading market for our Class A common stock will, to some extent, depend
on the research and reports that securities or industry analysts publish about us or our business. We do not have any control over these analysts. If our financial performance fails to meet analyst estimates or one or more of the analysts who cover
us downgrade our shares or change their opinion of our shares, our share price would likely decline. If one or more of these analysts cease coverage of our company or fail to regularly publish reports on us, we could lose visibility in the financial
markets, which could cause our share price or trading volume to decline.

Prior to this offering, there has been limited trading of our common
stock in alternative online markets at prices that may be higher than what our common stock will trade at once it is listed.

While, prior to this offering, our shares have not been listed on any stock exchange or other public trading market, there has been some trading of
our securities, for instance, in private trades or trades on alternative online markets, such as SecondMarket and SharesPost, that exist for privately traded securities. These markets are speculative, and the trading price of our securities on these
markets is privately negotiated. We cannot assure you that the price of our Class A common stock will equal or exceed the price at which our securities have traded on these private secondary markets.

Future sales of our Class A common stock in the public market could cause our share price to decline.

Sales of a substantial number of shares of our Class A common stock in the public market after this offering, or the perception that these
sales might occur, could depress the market price of our Class A common stock and could impair our ability to raise capital through the sale of additional equity securities. Based on the total number of outstanding shares of our common stock as
of September 30, 2011, upon the closing of this offering, we will have shares of Class A common stock and
shares of Class B common stock outstanding, assuming no exercise of our outstanding options and the sale of
shares of our Class A common stock to be sold by the selling stockholders.

All of the shares of Class A common stock sold in this offering will be freely tradable without restrictions or further registration under the Securities Act of 1933, as amended, or the Securities
Act, except for any shares held by our affiliates as defined in Rule 144 under the Securities Act. The remaining shares of Class B common stock outstanding after this
offering, based on shares outstanding as of September 30, 2011, will be restricted as a result of securities laws, lock-up agreements or other contractual restrictions that restrict transfers for 180 days after the date of this prospectus,
subject to certain extensions.

The requirements of being a public company may strain our resources, divert managements attention and
affect our ability to attract and retain qualified board members.

As a public company, we will be subject to the reporting
requirements of the Securities Exchange Act of 1934, as amended, or the Exchange Act, the Sarbanes-Oxley Act, the Dodd-Frank Act, the listing requirements of the
and other applicable securities rules and regulations. Compliance with these rules and regulations will increase our legal and financial compliance costs, make some activities more difficult, time-consuming or costly and increase demand on our
systems and resources. The Exchange Act requires, among other things, that we file annual, quarterly and current reports with respect to our business and operating results. The Sarbanes-Oxley Act requires, among other things, that we maintain
effective disclosure controls and procedures and internal control over financial reporting. In order to maintain and, if required, improve our disclosure controls and procedures and internal control over financial reporting to meet this standard,
significant resources and management oversight may be required. As a result, managements attention may be diverted from other business concerns, which could harm our business and operating results. Although we have already hired additional
employees to comply with these requirements, we may need to hire more employees in the future, which will increase our costs and expenses.

In addition, changing laws, regulations and standards relating to corporate governance and public disclosure are creating uncertainty for public companies, increasing legal and financial compliance costs and making
some activities more time consuming. These laws, regulations and standards are subject to varying interpretations, in many cases due to their lack of specificity, and, as a result, their application in practice may evolve over time as new guidance
is provided by regulatory and governing bodies. This could result in continuing uncertainty regarding compliance matters and higher costs necessitated by ongoing revisions to disclosure and governance practices. We intend to invest resources to
comply with evolving laws, regulations and standards, and this investment may result in increased general and administrative expenses and a diversion of managements time and attention from revenue-generating activities to compliance
activities. If our efforts to comply with new laws, regulations and standards differ from the activities intended by regulatory or governing bodies due to ambiguities related to practice, regulatory authorities may initiate legal proceedings against
us and our business may be harmed.

We also expect that being a public company and these new rules and regulations will make it more
expensive for us to obtain director and officer liability insurance, and we may be required to accept reduced coverage or incur substantially higher costs to obtain coverage. These factors could also make it more difficult for us to attract and
retain qualified members of our board of directors, particularly to serve on our audit committee and compensation committee, and qualified executive officers.

As a result of disclosure of information in this prospectus and in filings required of a public company, our business and financial condition will become more visible, which we believe may result in increased
threatened or actual litigation, including by competitors and other third parties. If such claims are successful, our business and operating results could be harmed, and even if the claims do not result in litigation or are resolved in our favor,
these claims, and the time and resources necessary to resolve them, could divert the resources of our management and harm our business and operating results.

As a result of becoming a public company, we will be obligated to develop and maintain proper and effective
internal controls over financial reporting. We may not complete our analysis of our internal controls over financial reporting in a timely manner, or these internal controls may not be determined to be effective, which may adversely affect investor
confidence in our company and, as a result, the value of our Class A common stock.

We will be required, pursuant to
Section 404 of the Sarbanes-Oxley Act, to furnish a report by management on, among other things, the effectiveness of our internal control over financial reporting for the first fiscal year beginning after the effective date of this offering.
This assessment will need to include disclosure of any material weaknesses identified by our management in our internal control over financial reporting, as well as a statement that our auditors have issued an attestation report on our
managements assessment of our internal controls.

We are in the early stages of the costly and challenging process of compiling
the system and processing documentation necessary to perform the evaluation needed to comply with Section 404. We may not be able to complete our evaluation, testing and any required remediation in a timely fashion. During the evaluation and
testing process, if we identify one or more material weaknesses in our internal control over financial reporting, we will be unable to assert that our internal controls are effective.

If we are unable to assert that our internal control over financial reporting is effective, or if our auditors are unable to express an opinion on
the effectiveness of our internal controls, we could lose investor confidence in the accuracy and completeness of our financial reports, which would cause the price of our Class A common stock to decline.

Because the initial public offering price of our Class A common stock will be substantially higher than the pro forma net tangible book value per share
of our outstanding Class A and Class B common stock following this offering, new investors will experience immediate and substantial dilution.

The initial public offering price of our Class A common stock will be substantially higher than the pro forma net tangible book value per share of our Class A and Class B common stock immediately
following this offering based on the total value of our tangible assets less our total liabilities. Therefore, if you purchase shares of our Class A common stock in this offering, you will experience immediate dilution of $ per share, the
difference between the price per share you pay for our Class A common stock and its pro forma net tangible book value per share as of September 30, 2011, after giving effect to the issuance of shares of our Class A common stock in
this offering. See Dilution on page 39 of this prospectus. Furthermore, investors purchasing shares of our Class A common stock in this offering will only own approximately % of our outstanding shares of
Class A and Class B common stock (and have % of the combined voting power of the outstanding shares of our Class A and Class B common stock), after the offering even though their aggregate investment will represent
% of the total consideration received by us in connection with all initial sales of shares of our capital stock outstanding as of September 30,
2011, after giving effect to the issuance of shares of our Class A common stock in this offering and shares of our Class A common stock to be sold by certain selling
stockholders. To the extent outstanding options to purchase our Class B common stock are exercised, investors purchasing our Class A common stock in this offering will experience further dilution.

This prospectus, including the sections entitled Prospectus Summary, Risk Factors, Use of Proceeds,
Managements Discussion and Analysis of Financial Condition and Results of Operations and Business, contains forward-looking statements. In some cases you can identify these statements by forward-looking words such as
believe, may, will, estimate, continue, anticipate, intend, could, would, project, plan, expect or the
negative or plural of these words or similar expressions. These forward-looking statements include, but are not limited to, statements concerning the following:



our ability to compete for quality content and increase the number of reviews on our platform;



our ability to attract and retain advertisers and consumers;



our ability to effectively monetize our mobile application and offer new products through our mobile app that are commercially successful;



our ability to successfully expand into new domestic and international markets;

our ability to comply with modified or new laws and regulations applying to our business, including copyright and privacy regulation;



our liquidity and working capital requirements;



our plans for the Yelp Foundation; and



our estimates regarding the sufficiency of our cash resources.

These forward-looking statements are subject to a number of risks, uncertainties and assumptions, including those described in Risk Factors. Moreover, we operate in a very competitive and rapidly
changing environment. New risks emerge from time to time. It is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause
actual results to differ materially from those contained in any forward-looking statements we may make. In light of these risks, uncertainties and assumptions, the forward-looking events and circumstances discussed in this prospectus may not occur
and actual results could differ materially and adversely from those anticipated or implied in the forward-looking statements.

You
should not rely upon forward-looking statements as predictions of future events. We cannot guarantee that the future results, levels of activity, performance or events and circumstances reflected

in the forward-looking statements will be achieved or occur. Moreover, except as required by law, neither we nor any other person assumes responsibility for the accuracy and completeness of the
forward-looking statements. We undertake no obligation to update publicly any forward-looking statements for any reason after the date of this prospectus to conform these statements to actual results or to changes in our expectations.

You should read this prospectus and the documents that we reference in this prospectus and have filed with the Securities and Exchange Commission
as exhibits to the registration statement of which this prospectus is a part with the understanding that our actual future results, levels of activity, performance and events and circumstances may be materially different from what we expect.

MARKET, INDUSTRY AND OTHER DATA

Unless otherwise indicated, information contained in this prospectus concerning our industry and the market in which we operate, including our
market opportunity and market size, is based on information from various sources, on assumptions that we have made that are based on those data and other similar sources and on our knowledge of the markets for our products. These data involve a
number of assumptions and limitations, and you are cautioned not to give undue weight to such estimates. The Gartner Report described herein, (the Gartner Report) represents data, research opinion or viewpoints published, as part of a
syndicated subscription service, by Gartner, Inc. (Gartner) and are not representations of fact. Each Gartner Report speaks as of its original publication date (and not as of the date of this prospectus), and the opinions expressed in
the Gartner Report are subject to change without notice. IDC estimates of worldwide smartphone shipments in 2015 derive from IDC, Worldwide Smartphone 2011-2015 Forecast Update: September 2011, doc # 230173, September 2011 and estimates of mobile
app downloads in the U.S. by 2013 derive from IDC, Worldwide and U.S. Mobile Applications, Storefronts, Developer, and In-App Advertising 2011-2015 Forecast: Emergence of Postdownload Business Models, doc #228221, June 2011.

We have not independently verified any third-party information and cannot assure you of its accuracy or completeness. While we believe the market
position, market opportunity and market size information included in this prospectus is generally reliable, such information is inherently imprecise. In addition, projections, assumptions and estimates of our future performance and the future
performance of the industry in which we operate is necessarily subject to a high degree of uncertainty and risk due to a variety of factors, including those described in Risk Factors and elsewhere in this prospectus. These and other
factors could cause results to differ materially from those expressed in the estimates made by the independent parties and by us.

We estimate that we will receive net proceeds from the sale of Class A common stock offered by us of approximately
$ million, based upon an assumed initial public offering price of $ per share, the midpoint of the price range set forth on the cover page of this
prospectus, and after deducting underwriting discounts and commissions and estimated offering expenses payable by us. If the underwriters option to purchase additional shares of Class A common stock is exercised in full, we estimate that
we will receive net proceeds of approximately $ million, after deducting underwriting discounts and commissions and estimated offering expenses payable by us. We will not receive any proceeds from the
sale of Class A common stock by the selling stockholders.

Each $1.00 increase (decrease) in the assumed initial public offering
price of $ per share would increase (decrease) the net proceeds to us from this offering by approximately $ million, assuming the number of shares
offered by us, as set forth on the cover page of this prospectus, remains the same and after deducting the underwriting discounts and commissions and estimated offering expenses payable by us. Similarly, each increase (decrease) of one million
shares in the number of shares of Class A common stock offered by us would increase (decrease) the net proceeds to us from this offering by approximately $ million, assuming that the assumed
initial public offering price remains the same, and after deducting the underwriting discounts and commissions and estimated offering expenses payable by us.

The principal purposes of this offering are to increase our capitalization and financial flexibility, increase our visibility in the marketplace and create a public market for our Class A common stock. As of
the date of this prospectus, we cannot specify with certainty all of the particular uses for the net proceeds to us from this offering. However, we currently intend to use the net proceeds to us from this offering primarily for general corporate
purposes, including working capital, sales and marketing activities, general and administrative matters and capital expenditures. We may also use a portion of the net proceeds for the acquisition of, or investment in, technologies, solutions or
businesses that complement our business, although we have no present commitments or agreements to enter into any acquisitions or investments. We will have broad discretion over the uses of the net proceeds from this offering. Pending these uses, we
intend to invest the net proceeds from this offering in short-term, investment-grade interest-bearing securities such as money market funds, certificates of deposit, commercial paper and guaranteed obligations of the U.S. government.

DIVIDEND POLICY

We have never declared or paid, and do not anticipate declaring or paying, any cash dividends on our capital stock. Any future determination as to the declaration and payment of dividends, if any, will be at the
discretion of our board of directors and will depend on then existing conditions, including our financial condition, operating results, contractual restrictions, capital requirements, business prospects and other factors our board of directors may
deem relevant.

The following table sets forth our cash and cash equivalents and capitalization as of September 30, 2011:



on an actual basis;



on a pro forma basis, giving effect to the filing of our amended and restated certificate of incorporation and the automatic conversion of all outstanding shares
of preferred stock into 143,267,115 shares of Class B common stock immediately prior to the closing of this offering as if such conversion had occurred on September 30, 2011; and



on a pro forma as adjusted basis to reflect, in addition, the sale by us of shares of
Class A common stock in this offering at an assumed initial public offering price of $ per share, the midpoint of the price range listed on the cover page of this prospectus, after
deducting underwriting discounts and commissions and estimated offering expenses payable by us, and the sale of
shares of Class A common stock by the selling stockholders.

You should read the information in this table together with our consolidated financial statements and related notes and Managements Discussion and Analysis of Financial Condition and Results of
Operations appearing elsewhere in this prospectus.

Each $1.00 increase (decrease) in the assumed initial public offering price of $ per share would increase (decrease) each of cash
and cash equivalents, additional paid-in capital, total stockholders equity (deficit) and total capitalization by approximately $ million, assuming the number of shares offered by us, as set
forth on the cover page of this prospectus, remains the same, and after deducting underwriting discounts and commissions and estimated offering expenses payable by us. Similarly, each increase (decrease) of one million shares in the number of shares
offered by us would increase (decrease) cash and cash equivalents, additional paid-in capital, total stockholders equity (deficit) and total capitalization by approximately $ million, assuming
the assumed initial public offering price remains the same, and after deducting underwriting discounts and commissions and estimated offering expenses payable by us. The pro forma as adjusted information discussed above is illustrative only and will
be adjusted based on the actual initial public offering price and other terms of this offering determined at pricing.

The
outstanding share information in the table above is based on no shares of our Class A common stock and 207,746,688 shares of our Class B common stock (including preferred stock on an as-converted basis) outstanding as of September 30,
2011, and excludes:



38,855,506 shares of Class B common stock issuable upon the exercise of outstanding stock options as of September 30, 2011 pursuant to our 2005 Plan or our
2011 Plan, at a weighted-average exercise price of $1.3417 per share;



3,776,221 additional shares of Class B common stock reserved for future issuance prior to this offering under our 2011 Plan; and



additional shares of Class A common stock to be reserved for future issuance under
our Amended and Restated 2011 Equity Incentive Plan, to be amended and restated in connection with this offering, as well as any automatic increases in the number of shares of Class A common stock reserved for future issuance under this benefit
plan.

If you invest in our Class A common stock, your interest will be diluted to the extent of the difference between the initial public offering
price per share of our Class A common stock and the pro forma as adjusted net tangible book value per share of our common stock immediately after this offering. The historical net tangible book value of our common stock as of September 30,
2011 was $31.4 million, or $0.49 per share. The pro forma net tangible book value of our common stock as of September 30, 2011 was $31.4 million, or $0.15 per share. Pro forma net tangible book value per share represents our total tangible
assets less our total liabilities, divided by the number of outstanding shares of Class A common stock and Class B common stock, after giving effect to the pro forma adjustments referenced under Capitalization.

After giving effect to (i) the pro forma adjustments referenced under Capitalization and (ii) receipt of the net proceeds
from our sale of shares of Class A common stock at an assumed initial public offering price of $ per share, the mid-point
of the price range set forth on the cover page of this prospectus, after deducting underwriting discounts and commissions and estimated offering expenses payable by us, our pro forma as adjusted net tangible book value as of September 30, 2011
would have been approximately $ , or $ per share. This represents an immediate increase in pro forma as adjusted net tangible book value of
$ per share to our existing stockholders and an immediate dilution of $ per share to investors purchasing Class A common stock in this offering.

The following table illustrates this dilution on a per share basis to new investors:

Assumed initial public offering price per share

$

Pro forma net tangible book value per share as of September 30, 2011

$

0.15

Increase in pro forma net tangible book value per share attributed to new investors purchasing shares in this offering

Pro forma net tangible book value per share after giving effect to this offering

Dilution in pro forma net tangible book value per share to new investors in this offering

$

Each $1.00 increase (decrease) in the assumed initial public offering price of
$ per share would increase (decrease) the pro forma net tangible book value, as adjusted to give effect to this offering, by $ per share and the dilution
to new investors by $ per share, assuming that the number of shares offered by us, as set forth on the cover page of this prospectus, remains the same, and after deducting underwriting discounts and
commissions and estimated expenses payable by us. Similarly, each increase (decrease) of one million shares in the number of shares of Class A common stock offered by us would increase (decrease) the pro forma net tangible book value, as
adjusted to give effect to this offering, by approximately $ per share and the dilution to new investors by $ per share, assuming the assumed initial
public offering price remains the same and after deducting underwriting discounts and commissions and estimated expenses payable by us. If the underwriters exercise their option to purchase additional shares of Class A common stock in full, the
pro forma net tangible book value per share of our Class A common stock and Class B common stock, as adjusted to give effect to this offering, would be $ per share, and the dilution in pro forma
net tangible book value per share to investors in this offering would be $ per share of Class A common stock.

The table below summarizes as of September 30, 2011, on a pro forma as adjusted basis described
above, the number of shares of our common stock, the total consideration and the average price per share (i) paid to us by our existing stockholders and (ii) to be paid by new investors purchasing our Class A common stock in this
offering at an assumed initial public offering price of $ per share, the midpoint of the price range set forth on the cover page of this prospectus, before deducting underwriting discounts and
commissions and estimated offering expenses payable by us.

Shares Purchased

Total Consideration

AveragePrice PerShare

Number

Percent

Amount

Percent

(dollars in thousands,other than per share)

Existing stockholders

%

$

%

$

New investors

$

Total

100.0

%

$

100.0

%

The total number of shares of our Class A and Class B common stock reflected in the discussion and tables
above is based on no shares of our Class A common stock and 207,746,688 shares of our Class B common stock (including preferred stock on an as-converted basis) outstanding as of September 30, 2011, and excludes:



38,855,506 shares of Class B common stock issuable upon the exercise of outstanding stock options as of September 30, 2011 pursuant to our 2005 Plan or our
2011 Plan, at a weighted-average exercise price of $1.3417 per share;



3,776,221 additional shares of Class B common stock reserved for future issuance prior to this offering under our 2011 Plan; and



additional shares of Class A common stock to be reserved for future issuance under our Amended and Restated
2011 Equity Incentive Plan, to be amended and restated in connection with this offering, as well as any automatic increases in the number of shares of Class A common stock reserved for future issuance under this benefit plan.

Sales by the selling stockholders in this offering will cause the number of shares held by existing stockholders to
be reduced to shares, or % of the total number of shares of our common stock outstanding after this offering, and will increase the number of shares held by new investors to
shares, or % of the total number of shares outstanding after this offering.

To the extent that any outstanding options are exercised, new options are issued under our stock-based compensation plans or we issue additional
shares of common stock in the future, there will be further dilution to investors participating in this offering. If all outstanding options under our 2005 Equity Incentive Plans of September 30, 2011 were exercised, then our existing
stockholders, including the holders of these options, would own % and our new investors would own % of the total number of shares of our Class A common stock and Class B common stock outstanding
upon the closing of this offering. In such event, the total consideration paid by our existing stockholders, including the holders of these options, would be approximately $ million, or
%, the total consideration paid by our new investors would be $ million, or %, the average price per share paid by our existing stockholders would
be $ and the average price per share paid by our new investors would be $ .

The following selected consolidated financial and other data should be read in conjunction with Managements Discussion and Analysis of
Financial Condition and Results of Operations and our audited consolidated financial statements and related notes, which are included elsewhere in this prospectus. The consolidated statements of operations data for the years ended
December 31, 2008, 2009 and 2010 and the consolidated balance sheet data as of December 31, 2009 and 2010 are derived from the audited consolidated financial statements that are included elsewhere in this prospectus. The consolidated
statements of operations data for the nine months ended September 30, 2010 and 2011 and the consolidated balance sheet data as of September 30, 2011 are derived from our unaudited consolidated financial statements appearing elsewhere in
this prospectus. We have included, in our opinion, all adjustments, consisting only of normal recurring adjustments, that we consider necessary for a fair presentation of the financial information set forth in those statements. The consolidated
statements of operations data for the years ended December 31, 2006 and 2007, as well as the consolidated balance sheet data as of December 31, 2006, 2007 and 2008, are derived from audited consolidated financial statements that are not
included in this prospectus. Our historical results are not necessarily indicative of the results to be expected in the future, and our interim results are not necessarily indicative of the results to be expected for the full year or any other
period.

Weighted-average shares used to compute pro forma net loss per share attributable to common stockholders(1) (unaudited)

Basic

198,366

203,350

Diluted

198,366

203,350

Other Financial and Operational Data:

Reviews(2)

611

1,993

4,689

8,834

15,115

13,475

22,390

Unique Visitors(3)

1,808

5,717

15,736

26,077

39,356

37,496

61,102

Claimed Local Business Locations(4)

NA

NA

25

120

307

247

529

Active Local Business Accounts(5)

NA



4

7

11

11

19

Adjusted EBITDA(6)

$

(2,218

)

$

(3,651

)

$

(5,303

)

$

(575

)

$

(5,741

)

$

(6,129

)

$

(1,113

)

(1)

Pro forma net loss per share attributable to common stockholders has been calculated assuming the conversion of all outstanding shares of our preferred stock into shares of our
Class B common stock, as though the conversion had occurred as of the beginning of the first period presented or the original date of issue, if later.

(2)

Represents the cumulative number of reviews submitted to Yelp since our inception, as of the period end. We define a review as each individually written assessment submitted by a
user who has registered by creating a public profile on our platform. For more information, see Managements Discussion and Analysis of Financial Condition and Results of OperationsKey MetricsReviews.

Represents the average number of monthly unique visitors for the last three months of the period. We define monthly unique visitors as the total number of unique visitors who
have visited our website at least once in a given month, and we average the number of monthly unique visitors in each month of the three-month period to calculate monthly average unique visitors. For more information, see Managements
Discussion and Analysis of Financial Condition and Results of OperationsKey MetricsUnique Visitors.

(4)

Represents the cumulative number of business locations that have been claimed on Yelp worldwide since 2008, as of the period end. We define a claimed local business location as
each business address for which a business representative visits our website and claims the free business listing page for the business located at that address. For more information, see Managements Discussion and Analysis of Financial
Condition and Results of OperationsKey MetricsClaimed Local Business Locations.

(5)

Represents the number of active local business accounts from which we recognized revenue during the last three months of the period. For more information, see
Managements Discussion and Analysis of Financial Condition and Results of OperationsKey MetricsActive Local Business Accounts.

(6)

We define adjusted EBITDA as net income (loss), adjusted to exclude: provision (benefit) for income taxes, other income (expense), net, interest income, depreciation and
amortization and stock-based compensation. See Non-GAAP Financial MeasuresAdjusted EBITDA for more information and for a reconciliation of adjusted EBITDA to net income (loss), the most directly comparable financial measure
calculated and presented in accordance with GAAP.

Stock-based compensation included in the statements of operations data
above was as follows:

The pro forma column reflects the automatic conversion of all outstanding shares of our preferred stock into 143,267,115 shares of our Class B common stock immediately prior
to the closing of this offering.

(2)

The pro forma as adjusted column reflects (i) the automatic conversion of all outstanding shares of our preferred stock into 143,267,115 shares of our Class B common stock
immediately prior to the closing of this offering and (ii) the sale by us of shares of our Class A common stock offered by this prospectus at an assumed initial
public offering price of $ per share, which is the midpoint of the price range set forth on the cover page of this prospectus, after deducting underwriting discounts and commissions and estimated
offering expenses payable by us.

(3)

A $1.00 increase (decrease) in the assumed initial public offering price of $ per share would increase (decrease) the amount of
cash and cash equivalents, working capital, total assets and total stockholders equity (deficit) by approximately $ million, assuming the number of shares offered by us, as set forth on the cover
page of this prospectus, remains the same and after deducting underwriting discounts and commissions and estimated offering expenses payable by us. Similarly, each increase (decrease) of one million shares in the number of shares of our Class A
common stock offered by us would increase (decrease) the amount of cash and cash equivalents, working capital, total assets and total stockholders equity (deficit) by approximately $ million,
assuming that the assumed initial public offering price remains the same and after deducting underwriting discounts and commissions and estimated offering expenses payable by us. The pro forma as adjusted information discussed above is illustrative
only and will be adjusted based on the actual public offering price and other terms of this offering determined at pricing.

To provide investors with additional information regarding our
financial results, we have disclosed in the table above and elsewhere in this prospectus adjusted EBITDA, a non-GAAP financial measure. We have provided a reconciliation below of adjusted EBITDA to net loss, the most directly comparable GAAP
financial measure.

We have included adjusted EBITDA in this prospectus because it is a key measure used by our management and board of
directors to understand and evaluate our core operating performance and trends, to prepare and approve our annual budget and to develop short- and long-term operational plans. In particular, the exclusion of certain expenses in calculating adjusted
EBITDA can provide a useful measure for period-to-period comparisons of our core business. Accordingly, we believe that adjusted EBITDA provides useful information to investors and others in understanding and evaluating our operating results in the
same manner as our management and board of directors.

Adjusted EBITDA has limitations as an analytical tool, and you should not
consider it in isolation or as a substitute for analysis of our results as reported under GAAP. Some of these limitations are:



although depreciation and amortization are non-cash charges, the assets being depreciated and amortized may have to be replaced in the future, and adjusted
EBITDA does not reflect cash capital expenditure requirements for such replacements or for new capital expenditure requirements;

adjusted EBITDA does not consider the potentially dilutive impact of equity-based compensation;



adjusted EBITDA does not reflect tax payments that may represent a reduction in cash available to us; and



other companies, including companies in our industry, may calculate adjusted EBITDA differently, which reduces its usefulness as a comparative measure.

Because of these limitations, you should consider adjusted EBITDA alongside other financial performance measures,
including various cash flow metrics, net income (loss) and our other GAAP results. The following table presents a reconciliation of adjusted EBITDA to net loss for each of the periods indicated:

You should read the following discussion of our financial condition and results of operations in conjunction with the consolidated financial statements and the notes thereto included elsewhere in this
prospectus. The following discussion contains forward-looking statements that reflect our plans, estimates and beliefs. Our actual results could differ materially from those discussed in the forward-looking statements. Factors that could cause or
contribute to these differences include those discussed below and elsewhere in this prospectus, particularly in Risk Factors.

Overview

Yelp connects people with great
local businesses. Our platform features more than 22 million reviews of almost every type of local business, from restaurants, boutiques and salons to dentists, mechanics, plumbers and more. These reviews are written by people using Yelp to share
their everyday local business experiences, giving voice to consumers and bringing word of mouth online. The information these reviews provide is valuable for consumers and businesses alike. Approximately 61 million unique visitors used
our website, and our mobile application was used on more than 5 million unique mobile devices, on a monthly average basis during the quarter ended September 30, 2011. Businesses, both small and large, use our platform to engage with consumers at the
critical moment when they are deciding where to spend their money. Our business revolves around three key constituencies: the contributors who write reviews, the consumers who read them and the local businesses that they describe.

As of September 30, 2011, we are active in 43 Yelp markets in the United States and 22 Yelp markets internationally. This footprint represents
a fraction of the potential markets that we are currently targeting for expansion. We develop each market in the following stages:

Identification. We select new markets based on a number of different city- or country-specific criteria, including
population size, local gross domestic product, or GDP, pre-existing base of reviews on our platform, internet and wireless penetration, proximity to existing markets, number of local businesses and local ad market growth rate.

Preparation and Launch. Before launching a market in any country, we license business listing information from
third-party data providers and create individual pages for each business location in the entire country. In some instances, we seed additional rich content, such as reviews, photos and hours of operation. At launch, consumers can read and write
reviews about any business on our platform and contribute information about businesses that are not already listed. We have active Yelp markets in Austria, Canada, France, Germany, Ireland, Italy, the Netherlands, Spain, the United Kingdom and the
United States.

Growth. After launch, we focus on attracting contributors, consumers and local businesses
to our platform. In each Yelp market, we hire a Community Manager, a local resident who helps increase awareness of our platform and who fosters a local community of contributors. In time, this community growth drives network effects whereby
contributed reviews expand the breadth and depth of our review base. This expansion draws an increasing number of consumers to access the content on our platform, thus inspiring new and existing contributors to create additional reviews that can be
shared with this growing audience.

Scale. At scale, our platform reaches a critical mass of reviews,
consumers and active local business accounts, and we begin an active sales effort to local businesses. Thereafter, modest incremental investment is required to support revenue growth. In Yelp markets that have attained this level of development, we
expect to achieve economies of scale and operating cost leverage.

Our success is primarily the result of significant investment in our communities, employees, content,
brand and technology. As we continue to launch new markets, we believe that we will follow a similar pattern of investment preceding revenue growth. The table below summarizes the expansion of our business since inception:

2005

2006

2007

2008

2009

2010

September 30,2011

Cumulative Yelp Markets(1)

1

6

14

20

27

49

65

New Yelp Markets(1)

1

5

8

6

7

22

16

Yelp Markets(1)

(United States)

SF

Boston

Chicago

LA

NYC

Seattle

San Diego

DC

Austin

Atlanta

Portland

Houston

Phoenix

San Jose

Philadelphia

Denver

Minneapolis

Dallas

Miami

Detroit

Sacramento

Honolulu

St. Louis

Orlando

Raleigh-Durham

Kansas City

Las Vegas

San Antonio

Columbus

Indianapolis

Charlotte

Cincinnati

Tucson

Nashville

New Orleans

Cleveland

Salt Lake City

Providence

Milwaukee

Pittsburgh

Tampa Bay

Louisville

Baltimore

Yelp Markets(1)

(International)

London

Toronto

Vancouver

Dublin

Leeds

Paris

Berlin

Glasgow

Manchester

Calgary

Edmonton

Amsterdam

Halifax

Edinburgh

Vienna

Hamburg

Lyon

Madrid

Munich

Marseille

Montreal

Rome

Metrics (in thousands):

Reviews(2)

114

611

1,993

4,689

8,834

15,115

22,390

Unique Visitors(3)

253

1,808

5,717

15,736

26,077

39,356

61,102

Claimed Business Locations(4)

NA

NA

NA

25

120

307

529

Active Local Business Accounts(5)

NA

NA



4

7

11

19

(1)

A Yelp market is defined as a city or region where we have hired a Community Manager. Cumulative Yelp markets represents the cumulative number of Yelp markets as of December 31
for each of the years in the period from 2005 through 2010 and as of September 30, 2011.

(2)

Represents the cumulative number of reviews submitted to Yelp since our inception, as of December 31 for each of the years in the period from 2005 through 2010 and as of
September 30, 2011. We define a review as each individually written assessment submitted by a user who has registered by creating a public profile on our platform. For more information, see Key MetricsReviews.

(3)

Represents the average number of monthly unique visitors for the last quarter of each of the years in the period from 2005 through 2010 and the three months ended September 30,
2011. We define monthly unique visitors as the total number of unique visitors who have visited our website at least once in a given month, and we average the number of monthly unique visitors in each month of the three-month period to calculate
monthly average unique visitors. For more information, see Key MetricsUnique Visitors.

(4)

Represents the cumulative number of business locations that have been claimed on Yelp worldwide since 2008, as of December 31 for each of the years in the period from 2008
through 2010 and as of September 30, 2011. For more information, see Key MetricsClaimed Local Business Locations.

(5)

Represents the number of active local business accounts from which we recognized revenue during the last quarter in each of the years in the period from 2007 through 2010 and
during the three months ended September 30, 2011. For more information, see Key MetricsActive Local Business Accounts.

We provide local businesses both free and paid services to connect with our large audience of consumers. Our free services include a business owners account that allows local merchants to

update business listing information and respond to reviews in real time. We generate revenue from our paid services to local businesses, which include enhanced business listings, search
advertising solutions and Yelp Deals, as well as the sale of brand advertising. Many of our active local business accounts pay us on a monthly basis, primarily by credit card. To date, almost all of our revenue and a majority of our expenses have
been denominated in U.S. dollars. As we expand internationally, however, we will incur an increasing percentage of our expenses in foreign currencies and, over time, expect to generate revenue in foreign currencies as well.

While our core local online advertising business in the United States has a significant and growing base of revenue, we have invested in several
initiatives to enhance our future growth opportunities. We first launched internationally in Canada in 2008 and have continued to expand across Canada and Europe and other regions to cover 22 Yelp markets internationally as of September 30,
2011. We do not currently generate any material revenue in these international markets, but we plan to begin building an international sales force in 2012. We introduced our first mobile app in 2008, and, during the quarter ended September 30,
2011, our mobile app was used on over 5 million unique mobile devices on a monthly average basis. We do not currently offer local and brand advertising on our mobile app; however, we see the mobile market as an attractive monetization
opportunity.

Each day, millions of consumers come to our platform to connect with great local businesses. In 2010, our net revenue was
$47.7 million, which represented an increase of 85% from 2009. In this same period, we generated a net loss of $9.6 million and an adjusted EBITDA loss of $5.7 million. For the nine months ended September 30, 2011, our net revenue was $58.4
million, which represented an increase of 80% from the nine months ended September 30, 2010. In this same period, we generated a net loss of $7.6 million and an adjusted EBITDA loss of $1.1 million. We do not expect to be profitable in the near
term as we continue to invest in our future growth.

We are making significant investments to position our company for long-term growth.
We expect to continue to invest in market and product development to improve both the consumer and local business experience on our online and mobile platforms. We expect to continue to expand our sales organization both domestically and abroad,
with plans to begin hiring an international sales force in 2012. As such, we expect to expend approximately $15.0 million internationally in 2012. We also intend to make significant capital expenditures to upgrade our technology and network
infrastructure to improve the ability of our platform to handle projected increases in usage and to enable the release of new features and solutions.

Factors Affecting Our Performance

Ability to Attract and Retain Local Businesses. In order to increase our revenue, we must continue to acquire and
retain local business advertisers that purchase our advertising solutions. Our largest sales and marketing expenses consist of the costs associated with acquiring local business advertisers. We spent a majority of our $38.5 million sales and
marketing expense for the first nine months of 2011 on initiatives relating to local business advertiser acquisition and expect to continue to expend significant amounts to attract additional local business advertisers. Failure to effectively
attract and retain paying local business advertisers would adversely affect our revenue and operating results.

New Market
Development. Our long-term growth depends on our ability to successfully develop new and existing domestic and international markets. It can take years for our platform to achieve a critical mass of consumers and reviews
to drive meaningful traction of our advertising solutions and begin to generate revenue in a particular market. As a result, we may continue to generate losses in new markets for an extended period, and different markets can be expected to grow at
different rates and generate varying levels of revenue.

Investment in Growth. We have aggressively invested in the growth of
our platform and intend to continue to invest to support this growth. We anticipate that our operating expenses will increase substantially in the foreseeable future as we continue to expand our platform, grow our contributor and local business
base, hire additional employees and further develop our technology.

Impact of Economic Conditions on Local
Businesses. We generate a significant portion of revenue from local businesses advertising on Yelp. Many local businesses have limited financial resources, making them more vulnerable to weak economic conditions. A
worsening economic outlook would likely cause businesses to decrease investments in advertising, which would adversely affect our revenue.

How We
Generate Revenue

We generate revenue from local advertising, brand advertising and other services, including Yelp Deals and partner
arrangements. The following table provides a breakdown of our net revenue.

Year Ended December 31,

Nine Months EndedSeptember 30,

2008

2009

2010

2010

2011

(dollars in thousands)

(unaudited)

Net revenue by product:

Local advertising

$

9,057

$

20,097

$

33,759

$

24,120

$

40,325

Brand advertising

2,955

5,393

12,046

7,592

12,653

Other services

127

318

1,926

745

5,402

Total

$

12,139

$

25,808

$

47,731

$

32,457

$

58,380

Percentage of total net revenue:

Local advertising

75

%

78

%

71

%

74

%

69

%

Brand advertising

24

21

25

24

22

Other services

1

1

4

2

9

Total

100

%

100

%

100

%

100

%

100

%

Local Advertising. We generate revenue from local advertising programs, including enhanced profile pages and
performance and impression-based advertising in search results and elsewhere on our website.

Brand Advertising. We generate
revenue from brand advertising through the sale of display advertisements (both graphic and text) on our website, including advertisements from leading national brands in the automobile, financial services, logistics, consumer goods and health and
fitness industries.

Other Services. We generate other revenue through the sale of Yelp Deals, monetization of remnant
advertising inventory through third-party ad networks and various partner arrangements related to reservations. Yelp Deals allow merchants to promote themselves and offer discounted goods and services on a real-time basis to consumers directly on
our website and mobile app and via email. We earn a fee on Yelp Deals for acting as an agent in these transactions, which we record on a net basis and include in revenue upon a consumers purchase of the deal. We also generate a small portion
of our revenue through revenue-sharing arrangements with partner companies. Currently, our revenue-sharing partner arrangements provide for the ability for consumers to make reservations on OpenTable and Orbitz through Yelp.

We regularly review a number of metrics, including the following key metrics, to evaluate our business, measure our performance, identify trends in our business, prepare financial projections and make strategic
decisions.

Reviews. Number of reviews represents the cumulative number of reviews submitted to Yelp since
inception, as of the end of the reporting period. We define a review as an individually written review submitted to us by a user who has registered by creating a public profile on our platform. We encourage contributors to include relevant facts and
details about a particular experience in each review, and each review includes a rating of one to five stars.

From December 31,
2009 to December 31, 2010, the number of reviews on Yelp increased by 71% from approximately 9 million to 15 million, and from September 30, 2010 to September 30, 2011, the number of reviews increased by 66% from
approximately 13 million to 22 million. This increase in reviews is a key driver of our platforms value proposition to consumers seeking information on local business and to local businesses seeking to engage consumers. Growth in reviews
also provides us with the benefit of a network effect that attracts more consumers, contributors and local businesses. As we expand internationally, growth in reviews will depend, in part, on our ability to include additional languages on our
website and mobile app.

Unique Visitors. Unique visitors represent the average number of monthly unique
visitors over a given three-month period. We define monthly unique visitors as the total number of unique visitors who have visited our website at least once in a given month, and we average the number of monthly unique visitors in each month of a
given three-month period to calculate monthly average unique visitors. We track unique visitors based on the number of visitors with unique cookies who have visited our website using either a computer or mobile browser, as measured by Google
Analytics, a product that provides digital marketing intelligence. Unique visitors do not include visitors who access our platform through our mobile app. For the quarter ended September 30, 2011, our mobile app was used on more than
5 million unique mobile devices on a monthly average basis. Because the number of unique visitors is based on visitors with unique cookies, an individual who accesses our website from multiple devices with different cookies will be counted as
multiple unique visitors, and multiple individuals who access our website from a shared device with a single cookie will be counted as a single unique visitor.

From the quarter ended December 31, 2009 to the same period of 2010, monthly average unique visitors to our website increased by 51% from approximately 26 million to 39 million, and from the quarter
ended September 30, 2010 to the same period of 2011, monthly average unique visitors increased by 63% from approximately 37 million to 61 million, reflecting an increase in brand awareness and our domestic and international expansion. We
view unique visitors as a key indicator of our brand awareness among consumers and whether we are providing consumers with useful products and features, thereby increasing usage and engagement. We believe that a higher level of usage may contribute
to an increase in sales of our advertising solutions, as businesses will have access to a larger potential customer base.

Claimed
Local Business Locations. The number of claimed local business locations represents the cumulative number of business locations that have been claimed on Yelp worldwide since 2008, as of a given date. We define a claimed
local business location as each business address for which a business representative visits our website and claims the free business listing page for the business located at that address.

From December 31, 2009 to December 31, 2010, the number of claimed local business locations
increased by 157% from approximately 120,000 to 307,000, and from September 30, 2010 to September 30, 2011, the number of claimed local business locations increased by 114% from approximately 247,000 to 529,000. We view the number of
claimed local business locations as an indicator of an increased level of engagement that local businesses have on Yelp and an opportunity to introduce those local businesses to Yelps advertising solutions.

Active Local Business Accounts. The number of active local business accounts represents the number of active local
business accounts from which we recognized revenue in a given three-month period. We treat business accounts that have the same payment and/or user information as a single business account.

From the quarter ended December 31, 2009 to the quarter ended December 31, 2010, the number of active local business accounts increased
by 61% from approximately 7,000 to 11,000, and from the quarter ended September 30, 2010 to the quarter ended September 30, 2011, the number of active local business accounts increased by 75% from approximately 11,000 to 19,000. We view
the number of active local business accounts as an indicator of the health of our business, our brand awareness, and the benefit that a business ascribes to the consumers coming to our website or using our mobile app, as well as our ability to grow
our market share. It also provides us with a measure of how productive our sales force is in engaging new active local business accounts.

Adjusted EBITDA. Adjusted EBITDA is a non-GAAP financial measure that we calculate as net income (loss), adjusted to
exclude: provision (benefit) for income taxes, other income (expense), net, interest income, depreciation and amortization and stock-based compensation. We believe that adjusted EBITDA provides useful information to investors in understanding and
evaluating our operating results in the same manner as our management and board of directors. This non-GAAP information is not necessarily comparable to non-GAAP information of other companies. Non-GAAP information should not be viewed as a
substitute for, or superior to, net income (loss) prepared in accordance with GAAP as a measure of our profitability or liquidity. Users of this financial information should consider the types of events and transactions for which adjustments have
been made. For more information about adjusted EBITDA and a reconciliation of adjusted EBITDA to net income (loss), see Selected Consolidated Financial and Other DataNon-GAAP Financial MeasuresAdjusted EBITDA.

Sales and
Marketing. Our sales and marketing expenses primarily consist of salaries, benefits, stock-based compensation, travel expense and incentive compensation for our sales and marketing employees. In addition, sales and
marketing expenses include business acquisition marketing, community management, branding, advertising and public relations costs, as well as allocated facilities and other supporting overhead costs. We spend almost no sales and marketing expenses
to acquire traffic to our website or mobile app. Our Community Managers are responsible for growing and fostering local communities, and coordinating events to raise awareness of our brand. We expect our community management costs to increase as we
continue to expand to new markets and within existing markets. We plan to continue to invest in sales and marketing to expand our domestic and international footprint, increase the number of active local business accounts and continue to build our

brand. We expect to spend approximately $15 million internationally in 2012. The substantial majority of these expenses will be related to hiring an international sales force. In the near-term,
we expect, on an absolute basis, sales and marketing expenses to increase and to be our largest expense; however, we expect sales and marketing expenses to decline as a percentage of net revenue over the long term.

Product Development. Our product development expenses primarily consist of salaries, benefits and stock-based
compensation for our engineers, product management and information technology personnel. In addition, product development expenses include outside services and consulting, allocated facilities and other supporting overhead costs. We believe that
continued investment in features, software development tools and code modification is important to attaining our strategic objectives, and, as a result, we expect product development expense to increase on an absolute basis in the near term but to
decrease as a percentage of net revenue over the long term.

General and Administrative. Our general and
administrative expenses primarily consist of salaries, benefits and stock-based compensation for our executive, finance, user operations, legal, human resources and other administrative employees. In addition, general and administrative expenses
include outside consulting, legal and accounting services, and facilities and other supporting overhead costs not allocated to other departments. We expect our general and administrative expenses to increase on an absolute basis in the near term as
we continue to expand our business and incur additional expenses associated with being a publicly traded company. We expect general and administrative expenses to decrease as a percentage of net revenue over the long term.

Depreciation and Amortization. Depreciation and amortization expenses primarily consist of depreciation on computer
equipment, software, leasehold improvements, capitalized website and internal software development costs and amortization of purchased intangibles. We expect depreciation and amortization expenses to increase on an absolute basis as we continue to
expand our technology infrastructure but to decline as a percentage of net revenue over the long term.

Other Income (Expense),
Net. Other income, net consists primarily of the interest income earned on our cash and cash equivalents and foreign exchange gains and losses.

Provision for Income Taxes. Provision for income taxes consists of federal and state income taxes in the United States and income taxes in certain foreign jurisdictions, deferred
income taxes reflecting the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, and the realization of net operating loss
carryforwards.

The following tables set forth our results of operations for the periods presented as a percentage of net revenue for those periods (certain items may not foot due to rounding). The period-to-period comparison of
financial results is not necessarily indicative of future results.

Total net revenue increased $25.9 million, or 80%, in the nine months ended September 30, 2011,
compared to the nine months ended September 30, 2010. Our local advertising revenue increased $16.2 million, or 67%, primarily due to a significant increase in the number of customers purchasing local advertising plans, and our brand
advertising revenue increased $5.1 million, or 67%, primarily due to an increase in the average spend per brand advertiser. In addition, our other services revenue increased $4.7 million, primarily due to an increase in revenue from the sale of Yelp
Deals and remnant advertising inventory and from added partnership arrangements.

Cost of Revenue

Nine Months EndedSeptember 30,

2010

2011

% Change

(dollars in thousands)

(unaudited)

Cost of revenue

$

2,168

$

4,098

89

%

Percentage of net revenue

7

%

7

%

In the nine months ended September 30, 2011, cost of revenue increased $1.9 million, or 89%, compared to the
nine months ended September 30, 2010. This increase was primarily attributable to an increase of $0.5 million in outside hosting and internet services fees, which are necessary to support the increase in visitors and transactions completed on
our website as well as an increase in merchant fees related to credit card transactions for local advertising of $0.5 million. Additionally, we added personnel to support our website infrastructure resulting in an increase of $0.2 million and
experienced an increase in expenses related to creative design for brand advertising customers of $0.7 million.

Sales and Marketing

Nine Months EndedSeptember 30,

2010

2011

% Change

(dollars in thousands)

(unaudited)

Sales and marketing

$

24,069

$

38,515

60

%

Percentage of net revenue

74

%

66

%

In the nine months ended September 30, 2011, sales and marketing expenses increased $14.4 million, or 60%,
compared to the nine months ended September 30, 2010. The increase was primarily attributable to an increase in headcount and related expenses of $11.3 million as we expanded our sales organization. As a result of our increase in net revenue,
our commission expenses also increased $1.6 million. In addition, we experienced an increase in facilities and related allocations of $1.0 million and general marketing and advertising costs of $0.7 million.

In the nine months ended September 30, 2011, product development expenses increased $3.8
million, or 81%, compared to the nine months ended September 30, 2010. The increase was primarily attributable to an increase in headcount and related expenses of $3.6 million, including an increase in stock-based compensation of $0.4 million,
as we continued to invest in adding features and functionality to our website and mobile app. In addition, we experienced an increase in facilities and related allocations of $0.2 million.

General and Administrative

Nine Months EndedSeptember 30,

2010

2011

% Change

(dollars in thousands)

(unaudited)

General and administrative

$

8,575

$

11,967

40

%

Percentage of net revenue

26

%

21

%

In the nine months ended September 30, 2011, general and administrative expenses increased $3.4 million, or
40%, compared to the nine months ended September 30, 2010. The increase was primarily attributable to an increase in headcount and related expenses of $4.0 million, including an increase in stock-based compensation expense of $1.5 million
related primarily to refresh grants as we continued to invest in key accounting, finance and management positions within the organization. Additionally, we invested in our systems and support for the growth of the business through the use of outside
consultants, which contributed to the increase by $1.1 million. These year-over-year increases were partially offset by the accrual of a $1.3 million legal settlement recorded in the quarter ended March 31, 2010.

Depreciation and Amortization

Nine Months EndedSeptember 30,

2010

2011

% Change

(dollars in thousands)

(unaudited)

Depreciation and amortization

$

1,483

$

2,790

88

%

Percentage of net revenue

5

%

5

%

In the nine months ended September 30, 2011, depreciation and amortization expenses increased $1.3 million, or
88%, compared to the nine months ended September 30, 2010. The increase was primarily the result of our investments in expanding our technology infrastructure and capital assets to support our increases in headcount across the organization.
Depreciation and amortization related to our capitalized website and internal use software development costs and fixed assets increased $0.3 million and $0.5 million, respectively.

In the nine months ended September 30, 2011, other income, net decreased $0.2 million compared
to the nine months ended September 30, 2010. The decrease in other income, net was largely driven by an unfavorable change in our foreign currency exchange rates, which contributed to transaction losses on foreign exchange in the nine months
ended September 30, 2011 compared to a gain in the same period in 2010.

Provision for Income Taxes

Nine Months EndedSeptember 30,

2010

2011

(in thousands)

(unaudited)

Provision for income taxes

$

48

$

65

In the nine months ended September 30, 2011, income tax expense was relatively flat compared to the nine
months ended September 30, 2010, and primarily related to taxes due in foreign jurisdictions.

Years Ended December 31, 2008, 2009 and 2010

Net Revenue

Year Ended December 31,

2008 to2009 %Change

2009 to2010 %Change

2008

2009

2010

(dollars in thousands)

Net revenue by product:

Local advertising

$

9,057

$

20,097

$

33,759

122

%

68

%

Brand advertising

2,955

5,393

12,046

83

123

Other services

127

318

1,926

150

506

Total

$

12,139

$

25,808

$

47,731

113

%

85

%

Percentage of net revenue by product:

Local advertising

75

%

78

%

71

%

Brand advertising

24

21

25

Other services

1

1

4

Total

100

%

100

%

100

%

During 2008, 2009 and 2010, we focused on revenue growth related to our local advertiser customer base as well as
the development of relationships with brand advertising agencies. Additionally, during the second half of 2010, we began selling Yelp Deals through our platform.

2009 Compared to 2010. Total net revenue increased $21.9 million, or 85%, from 2009 to 2010. Our local advertising revenue increased by $13.6 million, or 68%, primarily due to a
significant increase in the number of customers purchasing local advertising plans. Our brand advertising revenue also increased by $6.7 million, or 123%, due primarily to an increase in the average spend per brand advertiser. In addition, mid-2010,
we began selling Yelp Deals through our platform and during 2010 we added partnership relationships which in total contributed to an increase in other revenue of $1.6 million.

2008 Compared to 2009. Total net revenue increased $13.7 million, or
113%, from 2008 to 2009. Our local advertising revenue increased by $11.0 million, or 122%, primarily due to a significant increase in the number of customers purchasing local advertising plans. Our brand advertising revenue also increased by $2.5
million, or 83%, primarily due to an increase in the number of brand advertisers. In addition we added partnership relationships in 2009, which in total contributed to an increase in other revenue of $0.2 million.

Cost of Revenue

Year Ended December 31,

2008 to2009 %Change

2009 to2010 %Change

2008

2009

2010

(dollars in thousands)

Cost of revenue

$

608

$

1,121

$

3,137

84

%

180

%

Percentage of net revenue

5

%

4

%

7

%

2009 Compared to 2010. Cost of revenue increased $2.0 million, or 180%, from 2009 to
2010. This increase was attributable to a $0.5 million increase in outside hosting and internet services fees necessary to support the increase in visitors and transactions completed on our website as well as an increase of $0.3 million in merchant
fees related to credit card transactions for local customer plans. Additionally, we added personnel to support our website infrastructure resulting in an increase of $0.5 million and experienced an increase in expenses related to creative
design for brand advertising customers of $0.6 million.

2008 Compared to 2009. Cost of revenue increased
$0.5 million, or 84%, from 2008 to 2009. This increase was primarily attributable to a $0.1 million increase in outside hosting and internet services fees necessary to support the increase in visitors and transactions completed on our website as
well as a $0.3 million increase in merchant fees related to credit card transactions for local customer plans.

Sales and Marketing

Year Ended December 31,

2008 to2009 %Change

2009 to2010 %Change

2008

2009

2010

(dollars in thousands)

Sales and marketing

$

10,039

$

17,979

$

33,919

79

%

89

%

Percentage of net revenue

83

%

69

%

71

%

2009 Compared to 2010. Sales and marketing expenses increased $15.9 million, or 89%,
from 2009 to 2010. The increase was primarily attributable to an increase in headcount and related expenses of $11.7 million as we expanded our sales organization. In addition, we experienced an increase in facility costs of $1.3 million, general
marketing and advertising costs of $1.1 million and international marketing expenses of $1.2 million.

2008 Compared to
2009. Sales and marketing expenses increased $7.9 million, or 79%, from 2008 to 2009. The increase was primarily attributable to an increase in headcount and related expenses of $5.2 million as we expanded our sales
organization. In addition, we experienced an increase of $1.9 million in facilities and other related allocations, as well as general marketing and advertising costs of $0.4 million.

2009 Compared to 2010. Product development expenses increased $3.3 million, or 102%,
from 2009 to 2010. The increase was primarily attributable to an increase in headcount and related expenses of $2.7 million as well as expenses related to outside consultants of $0.3 million as we continued to invest in adding features and
functionality to our website and mobile app. In addition, we experienced an increase in facility costs of $0.3 million.

2008
Compared to 2009. Product development expenses increased $1.2 million, or 58%, from 2008 to 2009. The increase was primarily attributable to an increase in headcount and related expenses of $0.9 million as we continued to
invest in adding features and functionality to our website and mobile app. In addition, we experienced an increase in facility costs of $0.2 million.

General and Administrative

Year Ended December 31,

2008 to2009 %Change

2009 to2010 %Change

2008

2009

2010

(dollars in thousands)

General and administrative

$

5,113

$

4,597

$

11,287

(10

)%

146

%

Percentage of net revenue

42

%

18

%

23

%

2009 Compared to 2010. General and administrative expenses increased $6.7 million, or
146%, from 2009 to 2010. The increase was primarily attributable to an increase in headcount and related expenses of $2.6 million as we continued to invest in key accounting, finance and management positions within the organization. In addition, we
experienced an increase in legal expenses primarily related to the accrual of a $1.3 million legal settlement recorded in the quarter ended March 31, 2010, an increase in consulting and outside services of $1.1 million related to our ERP system
implementation and other efforts to build a global organization and an increase in facility costs of $0.3 million.

2008 Compared to
2009. General and administrative expenses decreased $0.5 million, or 10%, from 2008 to 2009. The decrease was primarily attributable to facility costs of $1.4 million, partially offset by the increase in headcount and
related expenses of $0.8 million.

2009 Compared to 2010. Depreciation and amortization expenses increased $1.1 million,
or 94%, from 2009 to 2010. The increase was primarily the result of our investments in expanding our technology infrastructure and capital assets to support our increases in headcount across the organization. Depreciation and amortization related to
our capitalized website and internal-use software development costs and fixed assets increased $0.3 million and $0.6 million, respectively.

2008 Compared to 2009. Depreciation and amortization expenses increased $0.6 million, or 110%, from 2008 to 2009. The increase was primarily the result of our investments in expanding
our technology infrastructure and capital assets to support our increases in headcount across the organization. Depreciation and amortization related to our capitalized website and internal use software development costs and fixed assets increased
$0.2 million and $0.4 million, respectively.

Other Income (Expenses), Net

Year Ended December 31,

2008

2009

2010

(in thousands)

Interest income

$

433

$

20

$

30

Transaction gains (losses) on foreign exchange





9

Other non-operating income (loss), net

1

13

(24

)

Total other income (expenses), net

$

434

$

33

$

15

2009 Compared to 2010. Other income (expense), net was relatively flat from 2009 to
2010.

2008 Compared to 2009. Other income (expense), net decreased $0.4 million from 2008 to 2009,
primarily as a result of a decrease in interest and investment income related to our short term investments that we sold in 2009 as well as a significant decline in interest rates.

Provision for Income Taxes

Year EndedDecember 31,

2008

2009

2010

(in thousands)

Provision for income taxes

$

4

$

8

$

75

2009 Compared to 2010. Income tax expense increased $67,000 from 2009 to 2010,
primarily related to taxes due in foreign jurisdictions.

2008 Compared to 2009. Income tax expense was
relatively flat from 2008 to 2009, primarily related to taxes due in foreign jurisdictions.

The following tables set forth our unaudited quarterly consolidated statements of operations data and our unaudited statements of operations data
as a percentage of net revenue for each of the seven quarters in the period ended September 30, 2011. We also present other financial and operational data and a reconciliation of net loss to adjusted EBITDA. We have prepared the quarterly data
on a consistent basis with the audited consolidated financial statements included in this prospectus. In the opinion of management, the quarterly financial information reflects all necessary adjustments, consisting only of normal recurring
adjustments, necessary for a fair presentation of this data. This information should be read in conjunction with the audited consolidated financial statements and related notes included elsewhere in this prospectus. The results of historical periods
are not necessarily indicative of the results of operations for a full year or any future period.